Taxpayer Assistance and Service (TAS) Act Draft Bill: What You Need to Know
On January 30, 2025, Senate Finance Committee Chair Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR) unveiled a discussion draft of the Taxpayer Assistance and Service (TAS) Act. Consolidating a range of National Taxpayer Advocate recommendations and prior administrative reform proposals, this sweeping bill aims to “improve the taxpayer experience” by upgrading IRS procedures, strengthening the Office of the Taxpayer Advocate, and enhancing oversight of tax professionals. To access the full text of the discussion draft, click here.
Discussion Draft and Public Input
Currently presented as a discussion draft, the TAS Act is open for public review and comment. Crapo and Wyden emphasize the bill’s goals to “facilitate communication between the agency and taxpayers, streamline processes for tax compliance and disputes, and ensure taxpayers have access to timely expert assistance.” Because the draft includes numerous changes—some of them highly technical—lawmakers are seeking feedback from the tax community to refine these proposals before any formal introduction.
Key Provisions Affecting Tax Professionals
Among the most notable reforms, the TAS Act introduces new rules for paid, non-credentialed tax return preparers. These preparers would need to demonstrate competence and character, submit to criminal background checks, maintain tax compliance, and potentially complete up to 18 hours of continuing education annually. Failing to meet these standards could result in denial, suspension, or revocation of their PTINs. The bill also targets “ghost” preparers who intentionally fail to furnish a valid PTIN or use another preparer’s PTIN, classifying such offenses as felonies subject to steep fines and possible imprisonment.
Additionally, the draft expands the definition of a “return” to include submissions that are altered after the taxpayer’s signature, which could subject unscrupulous preparers to penalties under Code Sec. 6694, 6695, or 6695A. Penalties for common infractions such as failing to furnish taxpayers with copies of their returns or to file required information returns would likewise increase.
Path to Enactment
Before becoming law, the TAS Act must clear multiple stages. The Senate Finance Committee may hold hearings and vote on whether to send the bill to the full Senate. A companion process would occur in the House of Representatives, involving the Ways and Means Committee. Although legislation can face significant hurdles, the bipartisan nature of the TAS Act—coupled with strong support from the National Taxpayer Advocate—may give it a solid chance of advancing.
What It Means for You
If enacted, the TAS Act could transform tax administration for individuals, businesses, and tax professionals alike. For individual taxpayers, the bill promises clearer notices, an enhanced dispute resolution process, and more accessible assistance through a bolstered Office of the Taxpayer Advocate. Businesses may find that streamlined IRS procedures reduce administrative burdens. Tax professionals—especially non-credentialed preparers—would need to navigate a stricter regulatory environment with heightened oversight, mandatory continuing education, and stiffer penalties for noncompliance.
Next Steps and Contact Information
Because these provisions remain in draft form, it is essential to stay informed as lawmakers incorporate public feedback and move the TAS Act through the legislative process. If you have questions about how these proposed changes might affect your tax obligations, practice, or compliance strategy, Strategic Tax Planning is here to help. Our team stays current on legislative developments and can offer personalized guidance tailored to your unique circumstances.
