What it does
SourcedProtecting 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.
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.
Official summary by the Congressional Research Service (Passed House, Sep 15, 2026).
Our plain-language breakdown, with what it means for you and the case for and against, is written once a bill starts to move.
What has happened
Sourced- Sep 16, 2026Received in the Senate and Read twice and referred to the Committee on Finance.Senate
- Sep 15, 2026Motion to reconsider laid on the table Agreed to without objection.House floor actions
- Sep 15, 2026On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5686)House floor actions
- Sep 15, 2026Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.Library of Congress
- Sep 15, 2026DEBATE - The House proceeded with forty minutes of debate on H.R. 9499.House floor actions
- Sep 15, 2026Considered under suspension of the rules. (consideration: CR H5686-5687)House floor actions
- Sep 15, 2026Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.House floor actions
- Sep 8, 2026Placed on the Union Calendar, Calendar No. 705.House floor actions
- Sep 8, 2026Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-806.House floor actions
- Sep 8, 2026Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-806.Library of Congress
- Jul 1, 2026Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 40 - 0.House committee actions
- Jul 1, 2026Committee Consideration and Mark-up Session HeldHouse committee actions
- Jun 29, 2026Referred to the House Committee on Ways and Means.House floor actions
- Jun 29, 2026Introduced in HouseLibrary of Congress
- Jun 29, 2026Introduced in HouseLibrary of Congress