Bill would limit IRS audit reach when preparers, not taxpayers, commit fraud
Passed one chamberH.R. 9499Latest action
Sponsor: Nicole Malliotakis · Representative · NY
AIDecoded by AI · checked against the recordRead the official text
Official title: Protecting Taxpayers from Ghost Preparers Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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The bill limits unlimited IRS audit time to cases where the taxpayer themselves commits fraud, not a dishonest preparer.
35-second read · 4 questions answered below
What does this do?
This bill clarifies that the IRS's unlimited time period to audit or assess taxes for fraud applies only when the taxpayer commits the fraud. If a "ghost preparer" commits fraud without the taxpayer's knowledge, normal time limits would apply instead. It also makes an unrelated technical renumbering fix to a disaster-deadline law.
Who does it affect?
Everyday taxpayers who use paid tax preparers, and tax preparers themselves, particularly unlicensed or fraudulent "ghost preparers."
Why does it matter?
The change would narrow the circumstances under which the IRS can pursue extended audits, shifting audit exposure away from taxpayers who did not commit the fraud themselves.
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Where does it stand?
- IntroducedJun 29, 2026
- House committee
- House vote
- SenateYou are here · Sep 16, 2026
- The president's desk
Right now: it passed the House, and the official record shows nothing new since. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Received in the Senate and Read twice and referred to the Committee on Finance.