Modifies section 330 to (1) expand subsection (a)(1) to explicitly regulate the practice of representatives of persons before the Department of the Treasury and the practice of tax return preparers; (2) amend subsection (c) to revise sanctioning language; and (3) add new subsections (f) establishing minimum competency standards for tax return preparers (identifying number, examination/annual continuing education, background check, and exemptions) and (g) defining 'tax return preparer', 'tax return', and 'claim for refund' by reference to specified provisions of the Internal Revenue Code.

Replaces paragraph (4) of section 6109(a) with revised text specifying that returns or claims for refund prepared by a tax return preparer must bear an identifying number, includes an explicit exception for preparers employed by attorney/CPA/enrolled agent firms who prepare returns under supervision, and adds a new subsection (e) authorizing the Secretary to rescind an identifying number after notice and opportunity for a hearing if the preparer is shown to be incompetent or disreputable and rescission would promote compliance; requires placing the Secretary's opinion and reasons for rescission in the Office of the Director of Professional Responsibility file.