Penalties for improper tax preparation or misappropriation of refunds

(a) Other assessable penalties with respect to the preparation of tax returns for other persons Section 6695, as amended by the preceding provisions of this Act, is amended— (1) in subsection (a)— (A) by striking $50 and inserting $250, and (B) by striking $25,000 and inserting $50,000, (2) in subsection (b)— (A) by striking $50 and inserting $250, and (B) by striking $25,000 and inserting $75,000, (3) in subsection (d)— (A) by striking $50 and inserting $250, and (B) by striking $25,000 and inserting $50,000, (4) in subsection (e)— (A) by striking $50 and inserting $250, and (B) by striking $25,000 and inserting $75,000, (5) in subsection (g), by striking $500 and inserting $1,000, and (6) in subsection (i)(1)— (A) by striking 2014 and inserting 2025, and (B) by striking calendar year 2013 and inserting calendar year 2024. (b) Misappropriation of refunds (1) In general Subsection (f) of section 6695 is amended to read as follows: (f) Misappropriation (1) In general Any person who is a tax return preparer who misappropriates any payment made in respect of the taxes imposed by this title which is issued to a taxpayer (other than the tax return preparer) shall pay a penalty in an amount determined under paragraph (2). (2) Penalty The amount of the penalty determined under this paragraph shall, with respect to each payment described in paragraph (1), be equal to the greater of— (A) $1,000, or (B) the full amount of such payment. (3) Exception Paragraph (1) shall not apply with respect to the deposit by a bank (within the meaning of section 581) of the full amount of the payment in the taxpayer's account in such bank for the benefit of the taxpayer.. (2) Conforming amendment Section 6695(i)(1) is amended by striking (f), and inserting (f)(2)(A),.