Why NATP supports the Taxpayer Assistance and Service Act

On Sept. 15, NATP wrote to Senate Finance Committee Chairman Mike Crapo and Ranking Member Ron Wyden, asking them to work with Senate leadership to bring the Taxpayer Assistance and Service Act (S. 3931) before the full Senate.

The committee approved the bipartisan bill 26-1 on July 30. It has not yet received consideration by the full Senate.

NATP supports the legislation because it addresses concerns tax professionals encounter in their work, including limited access to IRS information and the lack of consistent standards for paid tax return preparers.

Why preparer standards matter

A PTIN identifies a paid tax return preparer, but current law does not provide Treasury with the type of comprehensive statutory PTIN qualification framework contemplated by the TAS Act.

Section 504 of the TAS Act would create new statutory authority related to PTIN qualification, denial, suspension and revocation. The federal requirements generally would apply to paid preparers who are not CPAs, attorneys or enrolled agents in good standing and who do not qualify through a comparable state program.

To obtain or renew a PTIN, these preparers would need to meet suitability and education requirements. The suitability review would include criteria to be specified by Treasury or IRS guidance, including personal tax compliance and other suitability factors.

Required education would address ethics, professional responsibility and tax law, including recently enacted federal income tax legislation. Treasury could not require more than 18 hours annually or direct preparers to a particular education provider.

Accountability requires fair process

The TAS Act would authorize Treasury to deny, suspend or revoke a PTIN for conduct specified in the bill. Before suspending or revoking a PTIN, Treasury would need to provide notice and an opportunity for a hearing. The bill also allows preparers to appeal a PTIN denial, suspension or revocation.

NATP supports meaningful accountability when tax professionals have a fair process for responding to a determination.

Better IRS service helps taxpayers

The legislation extends beyond preparer standards. It would expand online access to returns, notices and correspondence for taxpayers and authorized tax professionals. Responses to IRS correspondence could also be submitted electronically.

Additional provisions would make information about processing backlogs and telephone wait times more readily available. The bill also calls for broader callback availability and would apply the timely mailing rule to qualifying electronic submissions and payments.

These changes could reduce unnecessary phone calls and mailed correspondence while giving tax professionals better information when helping taxpayers resolve IRS matters.