# Plain Language Summary: Taxpayer Protection and Preparer Proficiency Act of 2021

This bill creates new rules to make sure people who prepare tax returns for money are qualified and trustworthy. Right now, almost anyone can call themselves a tax preparer and help people file their taxes, even without any training or credentials. This bill would change that by requiring tax preparers to pass an exam, complete yearly training, and pass a background check before they can legally prepare returns for others. Think of it like requiring a driver's license to prepare taxes instead of letting anyone do it without any verification.

The bill brings back a program called the Registered Tax Return Preparer Program that the IRS had previously shut down. Under this reinstated program, tax preparers would need to take a basic exam about individual income taxes and complete at least 15 hours of continuing education each year to stay current with tax law changes. However, people who are already licensed as accountants, lawyers, or enrolled agents wouldn't have to go through this process again since they already meet similar standards. The bill also requires all tax preparers to get an identifying number so the IRS can track who prepared each return, making it easier to hold preparers accountable if they make mistakes or act dishonestly.

For everyday taxpayers, this means the person you hire to prepare your taxes would need to prove they know what they're doing. If a preparer misleads you or acts unethically, the IRS would have clearer authority to punish them—including taking away their ability to prepare taxes. The bill also allows the IRS to share information about tax preparers with state authorities, creating a more coordinated system to catch and stop unqualified or dishonest preparers from operating across state lines. Essentially, this bill aims to protect people from getting bad tax advice or having their returns prepared incorrectly by someone who lacks proper training.

Taxpayer Protection and Preparer Proficiency Act of 2021

Taxpayer Protection and Preparer Proficiency Act of 2021 This bill authorizes the Department of the Treasury to regulate tax return preparers, including by sanctioning preparers for incompetence and disreputable behavior and by establishing minimum competency standards for preparers.