Taxpayer Protection and Preparer Proficiency Act

HR 6323, the Taxpayer Protection and Preparer Proficiency Act, strengthens requirements for tax return preparers by establishing stricter identification number rules and penalties for violations. The bill increases penalties for preparers who fail to use valid identification numbers from $50 to $250 per violation, with annual caps of $50,000 to $75,000. It requires preparers to complete educational programs on ethics, professional responsibility, and tax law, and gives the IRS authority to deny, revoke, or suspend preparer identification numbers for misconduct or incompetence. The bill also establishes a program to help preparers avoid penalties by correcting identification number errors before returns are processed, and requires the IRS to publish annual reports on common errors and reasons preparers face penalties.