The new regulations will not be in effect for the current filing season, with individual tax returns due April 15.
But IRS Commissioner Doug Shulman says tax preparers will be held to higher standards in future years as the IRS steps up its oversight.
More than 80 percent of taxpayers use a paid tax preparer or tax software to complete their yearly returns.
However, paid tax preparers are unregulated in many states, unless they are also attorneys, certified public accountants or enrolled agents who represent taxpayers before the IRS.
