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Proposed Bill Would Allow IRS, Treasury Dept., to Regulate Tax Return Preparers

irs-small-3 Senate Finance Committee legislation implementing court order summary
  • - Require the IRS to develop guidelines for identity theft refund fraud cases to reduce burdens for victims; 
  • - require the IRS to prepare five biannual reports on identity theft tax refund fraud starting from Sept. 30, 2018; 
  • - require the IRS prepare a feasibility study on blocking electronic filing in certain cases; 
  • - make it a felony to use a stolen identity to file any return or other document;
  • - give the Treasury Department the authority to require or permit the use of a truncated social security number on forms such as the W-2;
  • - expand the Identity Protection Personal Identification Number program to anyone requesting protection from identity theft-related tax fraud; 
  • - lower the number of returns that can be filed on paper per year from 250 today to, eventually, 20 by 2022; 
  • - modify due dates for forms W-2, W-3 and 1099-MISC to within 15 days of the due date for employees and payee statements; 
  • - provide safe harbor de minimus errors on information returns, payee statements and withholding of $100 or below; 
  • - create an Internet platform for 1099 and W-2 filings; 
  • - allow the IRS to transfer up to $10 million in funds from its other accounts to efforts to combat identity theft and fraud; 
  • - require that electronically-prepared paper returns include a scannable code; 
  • - streamline critical pay authority for information technology positions; 
  • - increase the penalty for improper disclosure of use of information by preparers; 
  • - improve access to information in the National Directory of New Hires; 
  • - require taxpayer notification of suspected identity theft; 
  • - require that people authenticate their own identities before accessing the electronic services accounts; 
  • - repeal the requirement that the IRS issue a report on streamlining compliance with the tax code; and 
  • - clarify that enrolled agents can use an "E.A." credential.