State of New York Proposes to Regulate Tax Return Preparers

Tax Professionals' Resource
September 25, 2013 — 1,587 views  
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There is an old saying, ‘who watches the watchers?’ trying to make a point about how many levels of administration there should be for a perfect system. The infinite loop that exists where there is always somebody who is above the law seems quite flawed. In the same essence, there are now proposals being made by the New York state regarding the regulation of the preparers of tax return laws.

Transparency and Eligibility of Candidates

This means that the state is trying to incorporate a fair system so that those that are part of the legislation are not in fact frauds. Many people may misuse power and authority if they have any. A clear and transparent system that disallows certain people from making up this power body seems like a legitimate proposal. If the proposal goes through, then people who have not met their own obligations to tax will not be allowed to make tax laws.

Preparers Should have No Prior Criminal History Regarding Taxes

Any person who has been caught and convicted for a tax related crime also will not be eligible to be a part of this board. Any discrepancies regarding the preparation of tax returns or paying child support will once again not be tolerated. This system can in fact create a body that is more respected by citizens because it is devoid of known criminals or people who have defected before.

States Where the Regulations already Exist

There are of course some parts of this that are debatable. There are good chances that some people who have made mistakes will not do so again. However, civilians will feel more at rest if tax preparers are well qualified and are people of certain caliber. If this body is asked to take continuing courses on the subject matter and have a minimum of a few good years of experience, it is quite likely that it will be far more effective in the preparation of these taxes. As of now, California, Maryland, and Oregon are the only states that have a regulation regarding tax returns preparers.

Even this regulation may not be enough though, because they only require that candidates must have a minimum education level and should pass an exam. The state of New York proposes that the IRS’s examination should be only one of the papers that must be passed for a person to become part of the tax preparation body. Without proper credentials, the state says that people should not be allowed to make decisions that affect citizens.

Proper Qualification Required

It may work out to be quite effective since it is directed at the ethics of regulatory and legislation bodies that are functional. Background checks are a necessity and proper qualification ensures the delivery of good quality work. A preparation body that is formed based such principles may in fact come up with far better policies and tax return regulations than those which are currently being formed.

Tax Professionals' Resource