Thank you, Chairman Boustany, for holding this hearing. The regulation of paid tax return preparers is an important topic-important for taxpayers and important for tax compliance.
I want to commend the Internal Revenue Service for its leadership in this area. I am pleased with the overall strategy of the agency and its timeline for phasing in the new requirements. I also am pleased that many in the paid preparer community support the program.
We have all heard too many stories of “fly-by-night" tax preparers who take advantage of low- and middle-income taxpayers. I have long believed that regulating tax preparers will protect taxpayers by making sure that persons who are paid to prepare returns are knowledgeable and trustworthy.
I also believe that regulating tax preparers will enhance tax compliance. The new requirements will allow the agency to provide more oversight of preparers. This will allow the agency to detect patterns of fraud or simple error, and take steps to remedy the problem and protect taxpayers.
In closing, I thank the witnesses for being here today. I look forward to your testimony and any recommendations you may have for protecting taxpayers and educating them about the program.
Thank you.
