Protecting Taxpayers from Ghost Preparers Act
- Bill Number
- H.R. 9499
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-07-01: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 40 - 0.
- Last Updated
- 2026-07-07T17:19:39Z
AI-Generated Summary
Purpose This bill amends the Internal Revenue Code of 1986 to extend tax return preparation penalties to improperly altered returns and to limit the extension of assessment periods in cases of preparer fraud, with an additional technical correction.
Key Provisions
- Section 2 expands the definition of "return" under section 6696(e)(1) to include any tax return, administrative adjustment requests under section 6227, partnership adjustment tracking reports under section 6226(b)(4)(A), and any other document purporting to be such a return, request, or report.
- Section 3 amends section 6501(c)(1) by adding "by the taxpayer" after "intent," restricting the extension of the limitation period to fraud committed by the taxpayer.
- Section 4 redesignates subsection (f) of section 7508A as subsection (g) to correct a prior enactment.
Significant Changes to Existing Law
- Broadens the application of preparer penalties by including a wider range of documents that may be altered.
- Narrows the circumstances under which the IRS can extend the statute of limitations for fraud, excluding cases where only the preparer acted with intent.
- Provides a technical redesignation with retroactive effect to align with the Disaster Related Extension of Deadlines Act.
Potential Impacts
- Strengthens IRS enforcement tools against unauthorized changes to returns by preparers.
- May reduce the time available for the IRS to assess taxes in cases involving preparer misconduct, affecting both the agency and affected taxpayers.
- Applies to domestic tax administration with no direct effects on international relations or foreign entities.
Main Stakeholders Affected
- Taxpayers who use return preparers.
- Tax return preparers subject to penalties.
- The Internal Revenue Service, which administers penalties and assessments.
- Partnerships and their partners due to references to partnership-level adjustments.
Notable Legal, Constitutional, or Political Implications
- Clarifies statutory definitions and limitation rules without altering core constitutional authorities over taxation.
- Focuses on preventing improper alterations while maintaining the taxpayer-specific intent requirement for fraud extensions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Malliotakis, Nicole [R-NY-11]
Recent Actions
- 2026-07-01: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 40 - 0.
- 2026-07-01: Committee Consideration and Mark-up Session Held
- 2026-06-29: Referred to the House Committee on Ways and Means.
- 2026-06-29: Introduced in House
- 2026-06-29: Introduced in House
Bill Versions
- Protecting Taxpayers from Ghost Preparers Act — issued 2026-06-29 — PDF (3 pages)