A bill to amend the Internal Revenue Code of 1954 to provide for the licensing of and for certain other regulations with respect to persons in the business of preparing tax returns.

Provides, under the Internal Revenue Code, that no person, other than an attorney, certified public accountant, licensed public accountant or enrolled agent may prepare, or provide services in connection with the preparation of, any tax return for compensation unless such person is licensed. Sets forth the procedures for issuance of such licenses.

Permits revokation of any license if the licensee: (1) has misrepresented his qualifications for such license; (2) has misrepresented to any person the nature of the service he is qualified to provide; or (3) has intentionally misrepresented any item of information on any return.

Provides penalties for (1) failure of a preparer of income tax returns to sign the return; (2) for failure of the preparer to obtain a license; and (3) for understatements of tax by the tax return preparer. (Adds 26 U.S.C. 7002, 7407, 7217-18, 6050A, 6689)