A bill to amend the Internal Revenue Code of 1954 to provide for licensing of income tax return preparers.

Provides under the Internal Revenue Code that any individual (other than an attorney, certified public accountant, licensed public accountant, or enrolled agent) who prepares more than 25 returns during a taxable year must meet any standards set by the Secretary of the Treasury as a "United States licensed tax return preparer.

Authorizes the Secretary to license individuals who are in the business of preparing returns. Permits the Secretary after proper hearing to withdraw such license.

Provides a penalty of not more than $1,000 or six months imprisonment for anyone preparing returns in violation of this Act.