New York Suspends Preparers & Tightens Rules

It’s the biggest city in the nation, so reasonable it would have a proportionally higher crime rate, right? Yes, even for taxes. New York state recently sent out 56 tax suspension letters. 40 preparers seem to have accepted the judgement and the other 16 preparers are challenging the action. Due to the increased tax-related crimes, the state decided to increase the severity of its tax preparer registration program.

For the first time in New York State, most individuals who are paid to prepare at least ten New York State tax returns in a year will be required to:

1. Pass a state competency examination;

2. Be at least 18 years of age and be a high school graduate, or possess the equivalent of a high school degree;

3. Meet applicable IRS requirements; and

4. Take four hours of annual continuing education.

***Beginning tax return preparers with less than three years of experience preparing New York State tax returns must also take a 16-hour basic tax course.

Violation of the new standards could result in a range of disciplinary actions, from remedial education to suspension or cancellation of an NYS tax preparer’s registration.