Introduction of Tax Return Preparer Accountability Act

Floor Speech

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Mr. COHEN. Mr. Speaker, yesterday I introduced, along with my colleagues Reps. Robert ``Bobby'' Scott, Eleanor Holmes Norton and Carolyn Maloney, H.R. 1609, the Tax Return Preparer Accountability Act, which would provide explicit authority for the Internal Revenue Service (IRS) to regulate tax return preparers.

As we near April 15th, millions of taxpayers will pay someone to help them fill out their tax returns. Many of these tax preparers are honest and trustworthy. But, unfortunately, too many of them take advantage of their customers or help their customers engage in tax fraud themselves.

In Memphis, my Congressional district, a company named Mo' Money Taxes was caught charging taxpayers deceptive and outrageous fees and cheating them out of their refunds. The company also helped some customers prepare fraudulent returns that claimed bogus deductions and cheated the public of needed tax revenue. Fortunately, the Department of Justice has shut down the tax preparer company but there are many businesses just like them cheating taxpayers and the government alike.

The IRS issued rules in 2011 regulating the tax return preparer industry by requiring them to register with the IRS and meet certain education and testing standards. However, a federal court held that the IRS did not have the authority under existing law to issue these regulations and they could not come into effect.

That's why I introduced the Tax Return Preparer Accountability Act because it's important that anyone who assists in filing federal taxes is sufficiently trained and maintain a certain level of professional conduct.
I hope that Congress will quickly act on this bill to ensure that these dishonest business practices cannot continue, and protect the pocketbooks of middle-class families.

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