Tax preparer oversight might soon be getting a rehaul. A bipartisan Senate bill, the Taxpayer Assistance and Service Act (TAS Act), seeks to strengthen tax preparer oversight, giving the IRS expanded authority to regulate preparers, establish higher professional standards, and enforce stricter penalties for misconduct. And trust us: That’s great news.
Why stronger tax preparer oversight is needed.
The bill addresses years of concern over inconsistent tax return quality and limited enforcement power. According to the Government Accountability Office (GAO), millions of taxpayers rely on paid preparers each year, yet errors and fraud remain prevalent in the system. The group recommends greater oversight to protect taxpayers and improve trust in the process.
Over 57% of taxpayers receive assistance with their tax filings, according to IRS data. While most of these paid preparers operate ethically, the industry has long included unlicensed and unqualified individuals promoting themselves as professionals. Currently, taxpayers have few reliable ways to assess the qualifications behind a tax preparer’s sales pitch and assurances.
Tighter tax preparer oversight aims to address this gap.
“Paid preparer errors contribute to billions of dollars in improper claims of refundable tax credits and can have negative consequences for taxpayers. However, many paid preparers do not have professional credentials and are generally not subject to IRS regulation, including competency testing, suitability checks, or educational requirements,” the GAO states. “Our prior work indicates that in some circumstances, these unregulated preparers can make errors at a higher rate than taxpayers who prepare their own returns. The absence of IRS oversight can put taxpayers at risk of receiving insufficient or incompetent tax preparation services that may expose them to potentially burdensome enforcement actions.”
The TAS Act proposes education and certification requirements for preparers, clearer enforcement authority for the IRS, and higher penalties for intentional misconduct. Assuming Congress passes the TAS Act or similar legislation, we could see the following practical impacts for business taxpayers:
- Mandatory registration and testing for paid preparers.
- Continuing education requirements focused on ethics, tax law updates, and emerging IRS technology.
- Expanded IRS data analytics to flag questionable preparer activity.
- Stronger penalties for preparers who file fraudulent or negligent returns.
For business owners, better tax preparer oversight could lead to more reliable representation and fewer unpleasant surprises, such as IRS notices stemming from poorly prepared returns. Legitimate tax preparers benefit as well, because a uniform regulatory framework levels the playing field, ensuring honest firms aren’t undercut by unscrupulous operators offering low-cost but unreliable services.
How to protect yourself.
Your tax preparer doesn’t just file forms—they touch every aspect of your individual tax obligations and your company’s financial compliance. Inaccurate reporting or misinterpretation of complex tax laws can trigger audits, penalties, and reputational harm.
Whether the TAS Act passes or not, there are ways to protect yourself from tax preparers who are more risk than reward.
- Check for an IRS Preparer Tax Identification Number (PTIN). Anyone can help you with your taxes. But a legitimate paid tax return preparer will be enrolled with the IRS and will use their PTIN as part of their identity on your returns.
- Choose wisely. Tax preparers have a wide range of skills and education. If you’re a business owner or own significant assets, a Certified Public Accountant (CPA) may be your best match. CPAs are already held to high standards and must maintain credentials.
- Look for red flags. Unrealistic claims, cash up front, and other warning signs should give you pause. Your tax preparer should also take some accountability for your return by signing it, adding their PTIN, and providing a copy of the return when they file it.
- Expect professionalism. Request a clear engagement letter outlining responsibilities, ask questions about internal review and quality control processes, and prioritize relationships with preparers who emphasize accuracy, ethics, and open communication.
Better tax preparer oversight is not just about enforcement—it’s about elevating trust, accuracy, and value in every return filed. For business owners, that means fewer risks and more confidence that your financial story is told correctly to the IRS.
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Shutterstock photo _2564227661_April 28, 2026