Protecting American Taxpayers from Fraud Act of 2015

Protecting American Taxpayers from Fraud Act of 2015

This bill directs the Department of the Treasury to develop referral procedures for, and establish a liaison to, tax preparation firms to seek recovery of refunds for taxpayers defrauded by employees or agents of such firms. In developing such procedures, Treasury shall ensure that there is coordination among the following Internal Revenue Service (IRS) entities: (1) the Taxpayer Advocate Service, (2) the Wage & Investment Division, (3) Criminal Investigation, (4) the Office of Chief Counsel, (5) the Return Preparer Office, and (6) the Office of Professional Responsibility.

The bill also directs Treasury to develop comprehensive guidance for the treatment by IRS of all claims for refunds relating to tax return preparer fraud. Such guidance must provide a clear description of the rights and responsibilities of taxpayers with respect to actions taken by the taxpayer to minimize loss from tax preparer fraud, to receive restitution, and to substantiate a claim of fraud.