NATP urges Senate action on bipartisan tax bill

The National Association of Tax Professionals is pressing Senate leaders to advance the Taxpayer Assistance and Service Act after the Senate Finance Committee approved it 26-1. The bill would expand IRS service tools and set new education and suitability standards for some paid tax return preparers.

Why it matters: - The Taxpayer Assistance and Service Act would overhaul parts of IRS administration with more than 60 bipartisan reforms. - The bill could improve taxpayer access to returns, notices, correspondence and IRS response channels. - The measure also would create federal standards for some paid tax return preparers, affecting how professionals are trained and regulated.

What happened: - The National Association of Tax Professionals urged Senate leaders to move S. 3931 to the full Senate after bipartisan approval in the Senate Finance Committee. - NATP sent a Sept. 15 letter to Finance Committee Chairman Mike Crapo, R-Idaho, and Ranking Member Ron Wyden, D-Ore. - The Finance Committee approved the bill 26-1 on July 30. - NATP CEO Scott Artman said the vote showed that better taxpayer service and reasonable standards for paid tax return preparers are not partisan goals.

The details: - The TAS Act would expand online access to tax returns, notices and correspondence. - The bill would allow certain responses to the IRS to be submitted electronically. - The measure would require more information about processing backlogs and telephone wait times. - The legislation would expand callback availability. - The bill would support greater electronic processing of taxpayer correspondence and paper-filed returns. - The proposal would establish federal suitability and education requirements for certain paid tax return preparers. - Those requirements would generally apply to paid preparers who are not CPAs, attorneys or enrolled agents in good standing and who do not qualify through a comparable state program. - Required education would cover ethics, professional responsibility and tax law. - The annual education cap would be 18 hours. - The legislation would require notice and an opportunity for a hearing before the Treasury Department suspends or revokes a preparer tax identification number.

Between the lines: - NATP is backing the bill because its provisions match problems tax professionals encounter while helping taxpayers navigate the federal tax system. - The group is also signaling support for regulation that adds accountability without going beyond what it views as appropriate protections for tax professionals. - The 26-1 committee vote gives the bill momentum, but the legislation is still moving through Congress and could change.

What's next: - NATP is asking Senate Finance Committee leaders to work with Senate leadership to advance the bill for full Senate consideration. - The TAS Act still needs to become law, and its provisions could be revised as the bill advances. - NATP said interested parties can contact Nancy Kasten or Samantha Strong to discuss the letter or its position on preparer regulation.

The bottom line: - NATP wants Congress to pair IRS service improvements with clearer standards for paid tax return preparers before the bill's bipartisan momentum fades.