Senate Finance Committee advances TAS Act

The Senate Finance Committee approved the Taxpayer Assistance and Service Act (TAS) on July 30, sending the bipartisan bill to the full Senate for consideration.

The TAS Act includes more than 60 provisions aimed at improving IRS service, modernizing tax administration and strengthening taxpayer protections. Among them are expanded online account capabilities, clearer refund-status information, more callback options, and increased electronic processing of taxpayer correspondence and paper-filed returns.

What the bill could mean for tax professionals

The bill would establish minimum standards for certain paid tax return preparers seeking to obtain or renew a preparer tax identification number (PTIN). The IRS could require up to 18 hours of annual education covering tax law, ethics and professional responsibility, along with suitability requirements that include a background check and review of personal tax compliance.

CPAs, attorneys and enrolled agents in good standing would be exempt because they are already subject to professional standards. Certain preparers who meet comparable state licensing or registration requirements could also qualify for an exemption.

The proposal focuses on continuing education rather than competency testing. It would give the IRS additional authority to deny, suspend or revoke PTINs in cases involving serious misconduct, repeated preparation errors or failure to meet applicable requirements.

Other provisions relevant to tax professionals would improve access to IRS online accounts, establish a secure system for validating electronic filing identification numbers (EFIN) and help prevent taxpayers and representatives from having to submit the same documents repeatedly.

NATP’s role in the effort

NATP has consistently supported reasonable standards for paid tax return preparers that promote education, accountability and ethical conduct while avoiding unnecessary burdens on qualified professionals.

NATP is also a member of the Coalition for Trusted Tax Preparation, which urged the committee to pass the TAS Act with its paid preparer provisions intact. Coalition members include the National Association of Enrolled Agents, the American Institute of Certified Public Accountants, H&R Block, Jackson Hewitt and Intuit.

What happens next

For now, committee approval does not change current law or create new requirements for tax professionals. The full Senate must still consider the TAS Act. The House has advanced separate tax administration measures, so the two chambers may need to reconcile their proposals before final legislation can be sent to the president.

Members can review the Senate Finance Committee’s markup materials and recording.