The gist

Forces paid tax preparers to meet federal competency standards and hikes penalties for fraud, errors, and stolen refunds. Aims to protect taxpayers from incompetent or shady preparers.

Who wins, who loses

• Wins: taxpayers using paid preparers, honest preparers, the Internal Revenue Service (IRS), state licensing boards.
• Loses: unregulated 'ghost' preparers, fraud rings stealing refunds, low-quality storefront tax shops.

What it does

• Requires preparers to pass background checks and complete up to 18 hours yearly of ethics and tax-law training.
• Raises most preparer penalties from $50 to $250 per violation, capped at $75,000 yearly.
• Creates new felony (up to 2 years prison, $50,000 fine) for willfully misusing preparer ID numbers.
• Lets the IRS suspend or revoke preparer IDs for incompetence, fraud, or threatening clients.

Why should I care?

Millions of families pay someone to file taxes, and many teens file their first returns soon. Supporters say standards stop fraudsters who steal refunds or botch returns. Critics argue new rules raise costs for small preparers and could push prices up. Where do you land? Vote below and use "Tell Your Rep" to make sure your voice reaches Congress.