United StatesProtecting Taxpayers from Ghost Preparers Act
What it does
This bill limits the amount of time the Internal Revenue Service (IRS) has to assess taxes related to fraudulent or false federal tax returns where there is no intent by the taxpayer to evade taxes.
More detail
As background, the IRS generally has three years from the date that a tax return is filed (statute of limitations) to assess taxes owed by the taxpayer for the tax year. However, if a false or fraudulent tax return is filed with the intent to evade tax (fraud exception), then the IRS may assess taxes at any time. In Murrin v. Commissioner the U.S. Tax Court held (and the U.S. Court of Appeals for the Third Circuit affirmed) that the fraud exception applies when a tax return preparer places false or fraudulent entries on a tax return without the taxpayer’s knowledge. In contrast, the U.S. Court of Federal Claims held in BASR Partnership v. Commissioner that the fraud exception only applies if the taxpayer intends to evade taxes.
The bill limits the fraud exception to cases in which the taxpayer intends to evade taxes.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 16Received in the Senate and Read twice and referred to the Committee on Finance.Latest
- Sep 15Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- Sep 15Considered under suspension of the rules. (consideration: CR H5686-5687)
- Sep 15DEBATE - The House proceeded with forty minutes of debate on H.R. 9499.
- Sep 15Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5686)Passed House
- Sep 15Motion to reconsider laid on the table Agreed to without objection.
- Sep 8Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-806.
- Sep 8Placed on the Union Calendar, Calendar No. 705.
- Jul 1Committee Consideration and Mark-up Session Held
- Jul 1Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 40 - 0.
- Jun 29Introduced in House
- Jun 29Referred to the House Committee on Ways and Means.Introduced