House Approves Taxpayer Protection Act

The House Ways and Means Committee approved H.R. 1677, the "Taxpayer Protection Act of 2007," which seeks to crack down on RALs and prevent identity theft. The bill would:

  • Allow both spouses in a family-owned sole proprietorship to pay Social Security and Medicare taxes (see details on pages 2-4 of the bill);
  • Require IRS to cease providing debt indicators to predatory RAL providers—and leave it to the Treasury Department to determine the definition of "predatory." (EAs may recall that when IRS eliminated the debt indicator altogether in the mid-1990s, RAL volumes took a nosedive.);
  • Prohibit the misleading use of Internet domain names such as irs.com, irs.net, and irs.org;
  • Require IRS to notify a taxpayer when there may be an unauthorized use of the taxpayer's identity; and,
  • Permit IRS to share tax information with federal prison officials in order to prevent tax fraud by prisoners.

While it does not include NAEA's idea of real taxpayer protection (regulation of all tax return preparers), the bill could nevertheless become a vehicle for such legislation further down the road. The full House is expected to take up the bill in mid-April.

You may like these other stories...

Some of your clients may get away to business conventions from time to time. It gives them a chance to rub shoulders with colleagues, catch up on the latest developments, and fine-tune their skills. And, when the meetings or...
PwC must face $1 billion lawsuit over MF Global adviceA federal judge on Wednesday ordered PricewaterhouseCoopers (PwC) to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the...
Being an accountant doesn't mean you're giving investment advice to clients. However, at tax time, accountants often have to deal with the results of any investment advice clients obtained during the year—the...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.