The bill amends the "Tax Preparers Act" by updating its title and introducing new definitions and responsibilities for tax return preparers. Key insertions include the definition of a "ghost preparer," who is a tax return preparer that does not self-identify on returns or comply with the Preparer Tax Identification Number (PTIN) requirements. The bill specifies that tax return preparers must not only comply with state laws but also must not engage in activities that facilitate ghost preparation. Additionally, it mandates that tax return preparers must include their PTIN on all returns they prepare.

Furthermore, the bill establishes civil penalties for tax return preparers who willfully mislead clients, commit fraud against taxpayers, circumvent tax laws, or violate any provisions related to their duties and responsibilities. The penalties include fines of up to $1,000 for each return filed in violation of these provisions. If a tax return preparer has committed a violation after a suspension or revocation of their privileges, they may face penalties of up to $5,000 if suspended or $10,000 if revoked, per violation. The tax administrator is also required to periodically publish a list of tax return preparers whose privileges have been suspended or revoked. This act will take effect upon passage.