Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material impact on environmental policy or regulation.
Risks
- No material impact on environmental policy or regulation.
FederalUS CongressReported
H.R. 9499: Protecting Taxpayers from Ghost Preparers Act
Rep. Nicole Malliotakis (R-NY)
H.R. 9499 status: Reported.
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
73OUT OF 100
Score:73/100 civic fit
Risk:Low Risk
Impact:Moderate Impact 55/100
Constitutionality95%
Bipartisan100%
Public opinion70%
Bill summary
What changes
The bill updates the Internal Revenue Code of 1986 to broaden the definition of a 'return' for penalty purposes to include fraudulent documents used by 'ghost preparers.' It also clarifies that statutes of limitations for preparer fraud extensions apply only when the taxpayer holds intent to evade tax.
Who is affected
Tax return preparers, taxpayers utilizing third-party services, and the Internal Revenue Service (IRS).
Requirements and enforcement
Preparers must ensure all documents labeled as or purporting to be tax returns, administrative adjustment requests, or partnership adjustment tracking reports adhere to standard compliance; entities must manage data according to updated enforcement definitions.
Costs and funding
Minor administrative and compliance costs for tax preparation businesses to align with broader definition of 'return'.
When it takes effect
Provisions take effect on the date of enactment, with specific technical amendments applying to assessments or proceedings begun after enactment.
Potential benefits
Provides the IRS with clearer legal authority to penalize fraudulent tax preparers who alter or falsify financial documents without traditional tax return filings.
Risks and tradeoffs
Potential for ambiguity when distinguishing between fraudulent 'purported' documents and simple clerical errors by taxpayers or preparers.
What is still unknown
The degree to which the expanded definition of 'return' will affect legitimate but informal tax assistance documents.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Positive outlook
75%
Benefits
- Reduces financial fraud by targeting 'ghost preparers'.
- Clarifies penalty structures for fraudulent documents.
Risks
- Increased compliance documentation for tax preparation firms.
Society
Positive outlook
70%
Benefits
- Increases protection for taxpayers against predatory preparation practices.
- Ensures consistent enforcement of tax statutes.
Risks
- Risk of confusion for taxpayers regarding audit and fraud penalty timelines.
Technology Industry
Not scored in this analysis.
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Civic Accountability
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Public Health & Safety
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03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Confidence
High
Information is complete and verified.
Analysis basis
Full bill text (Congress.gov)
Source used for this bill's analysis.
Warning
Expansion of the definition of 'return' to include documents 'purporting' to be filings requires precise administrative implementation to avoid overreach.
Analysis scope
Targets specific procedural loopholes rather than broader tax evasion systemic issues.
04
Where it stands
Official record- IntroducedComplete
- CommitteeCurrent
- House and SenateUpcoming
- Final agreementUpcoming
- PresidentUpcoming
- EnactedUpcoming
05
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06
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