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New York Tightens Up on Tax Preparers

Now this an interesting bit of tax news out of New York:

Tax Law § 32 now requires tax return preparers and facilitators to post certain items at their places of business.

If you’re a tax return preparer or facilitator, you must post the following items—prominently and conspicuously—at every location where you provide tax preparation or facilitation services to clients: 

  • a copy of your current Certificate of Registration, issued by the Tax Department
  • a current price list (see example) in at least fourteen-point type that includes, but is not limited to:
    • a list of all your tax return preparation and facilitation services
    • your minimum charge for each service, including each type of federal and New York State tax return for which you prepare or provide facilitation services
    • a list of the factors—and their associated fees—that may increase your stated charge
  • the Tax Department’s Publication 135.1Consumer Bill of Rights Regarding Tax Preparers

Note: The Tax Department has two versions of the Consumer Bill of Rights Regarding Tax Preparers (available in other languages). You must:

Penalties for failure to comply

If you’re a tax return preparer or facilitator and you fail to comply with any of the new posting requirements by January 1, 2022, we will bill you:

  • $500—for any failure—for the first month of noncompliance
  • $500—for any failure—for each subsequent month of noncompliance, up to $10,000 in a calendar year

Considering how many fly-by-night tax outfits in this country, this is probably not a bad idea. I know the HR Block started posting their prices a couple of years ago and I was glad to see that happen. This seems to be a tax law that actually makes sense.