Protecting Taxpayers from Ghost Preparers Act

Summary

Protecting Taxpayers from Ghost Preparers Act 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. The bill also expands the types of documents for which various penalties may be imposed against tax return preparers. 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. Further, under the bill, tax return preparers may be subject to penalties related to false or fraudulent documents purporting to be federal tax returns, partnership administrative adjustment requests, or partnership adjustment tracking reports. (Currently, the penalties apply if the documents are valid submissions to the IRS.)

Summary from the Congressional Research Service. How we handle summaries

Where it stands

Passed one of the two chambers; it still needs the other.

House Committee on Ways and Means · U.S. House of Representatives

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Full history

1. Sep 16, 2026

   Sent to the executive

   Received in the Senate and Read twice and referred to the Committee on Finance.

   U.S. Senate

2. Sep 15, 2026

   Considered Under Suspension of the rules. (consideration: cr H5686-5687)

   Considered under suspension of the rules. (consideration: CR H5686-5687)

3. Sep 15, 2026

   Considered Under Suspension of the rules. (consideration: cr H5686-5687)

   Considered under suspension of the rules. (consideration: CR H5686-5687)

4. Sep 15, 2026

   Debate - the House Proceeded With Forty Minutes of Debate on H.R. 9499.

   DEBATE - The House proceeded with forty minutes of debate on H.R. 9499.

   U.S. House of Representatives

5. Sep 15, 2026

   Passed a chamber

   Motion to reconsider laid on the table Agreed to without objection.

Read the record

• Read on Congress.gov (opens in a new tab) The official record on Congress.gov.