Protecting Taxpayers from Ghost Preparers Act in plain language
1: Short title
This section would state that the Act may be cited as the Protecting Taxpayers from Ghost Preparers Act.
Show official text
1. Short title This Act may be cited as the Protecting Taxpayers from Ghost Preparers Act .
2: Penalties for tax return preparers who improperly alter returns
This section would rewrite the definition of return in section 6696(e)(1) of the Internal Revenue Code, the definition that determines what documents trigger the tax return preparer penalty rules. Under the rewritten definition, return would mean: any return of any tax imposed by the Internal Revenue Code; any administrative adjustment request under section 6227; any partnership adjustment tracking report under section 6226(b)(4)(A); and any other document purporting to be a return, request, or report described in those three categories. By reaching documents that merely purport to be a return, adjustment request, or tracking report, the new definition would extend the preparer penalty rules to improperly altered or falsified versions of these documents, not only to genuine ones. The amendment would take effect on the date this Act is enacted.
Show official text
2. Penalties for tax return preparers who improperly alter returns (a) In general Paragraph (1) of section 6696(e) of the Internal Revenue Code of 1986 is amended to read as follows: (1) Return The term return means— (A) any return of any tax imposed by this title, (B) any administrative adjustment request under section 6227, (C) any partnership adjustment tracking report under section 6226(b)(4)(A), and (D) any other document purporting to be a return, request, or report described in subparagraphs (A) through (C). . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act.
3: Limitation period not extended for victims of preparer fraud
This section would amend section 6501(c)(1) of the Internal Revenue Code, which concerns the limitation period for tax assessments, by inserting the words by the taxpayer immediately after the word intent. This would narrow the intent element in that provision to the taxpayer's own intent, so that fraud committed by a preparer alone, without the taxpayer intending to evade tax, would not extend the limitation period for that taxpayer. The amendment would apply to assessments made or proceedings begun after the date this Act is enacted.
Show official text
3. Limitation period not extended for victims of preparer fraud (a) In general Section 6501(c)(1) of the Internal Revenue Code of 1986 is amended by inserting by the taxpayer after intent . (b) Effective date The amendment made by this section shall apply to assessments made or proceedings begun after the date of the enactment of this Act.
4: Technical amendment related to the Disaster Related Extension of Deadlines Act
This section would redesignate subsection (f) of section 7508A of the Internal Revenue Code, the subsection added by the Disaster Related Extension of Deadlines Act, as subsection (g). This is a technical renumbering and would not by itself change what that subsection requires. The change would take effect as if it had been included in section 2(a) of the Disaster Related Extension of Deadlines Act, meaning it would apply retroactively to the same effective date as that earlier provision.
Show official text
4. Technical amendment related to the Disaster Related Extension of Deadlines Act (a) In general Subsection (f) of section 7508A of the Internal Revenue Code of 1986 (as added by the Disaster Related Extension of Deadlines Act) is redesignated as subsection (g). (b) Effective date The amendment made by this subsection shall take effect as if included in section 2(a) of the Disaster Related Extension of Deadlines Act.