Protecting Taxpayers from Ghost Preparers Act
Sponsored By: Representative Malliotakis, Nicole [R-NY-11]
In Committee
Summary
Expanded penalties for ghost tax preparers are the bill's central goal. It would broaden what counts as a tax 'return', limit when the IRS can extend assessment time for victims of preparer fraud, and fix a technical disaster-deadline rule.
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- Families and taxpayers: Victims of ghost preparer fraud would not allow the IRS extra time to assess taxes based on a preparer's intent because the bill inserts the phrase "by the taxpayer" into the fraud limitation rule.
- Tax return preparers: The bill would redefine "return" for preparer-penalty purposes to include tax returns, administrative adjustment requests under section 6227, partnership adjustment tracking reports under section 6226(b)(4)(A), and other documents that purport to be those filings. That broadens who can face penalties for altering or filing fake documents.
- Disaster-affected filers and the IRS: A technical change redesignates a subsection of the disaster-related deadline code and makes that change effective as if included in the earlier Disaster Related Extension of Deadlines Act, aligning the provision with the prior extension framework.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Limits on fraud extensions for taxpayers
This bill would narrow when the IRS can extend the time to assess tax for fraud. It would add the words "by the taxpayer" so the fraud exception applies only when the taxpayer had the intent. The amendment would apply to assessments made or proceedings begun after the date of enactment.
Bigger preparer penalties for more filings
This bill would expand what counts as a tax "return" for preparer penalties. It would include any tax return, any administrative adjustment request, partnership adjustment tracking reports, and other documents that pretend to be those filings. If enacted, tax return preparers would face broader penalty exposure, and partners or taxpayers could see more documents treated as returns. The change would take effect on the date of enactment.
Sponsors & CoSponsors
Sponsor
Malliotakis, Nicole [R-NY-11]
NY • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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