SB17 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

First Special Session 2016

Title

Individual tax preparers, registration, penalties for violations, Alabama Taxpayer Protection and Assistance Act Advisory Council estab.

Summary

SB17 would create a state registration and regulatory system for individual tax preparers in Alabama to protect taxpayers and standardize exams, education, and certification.

What This Bill Does

It would require certain individual tax preparers to register with the Alabama Department of Revenue before preparing Alabama state income tax returns. It would bar unregistered people from providing tax preparation services, set minimum qualifications, and establish penalties for violations. It would create the Alabama Taxpayer Protection and Assistance Act Advisory Council to set acceptable exams, continuing education, and certifications. It would require preparers to disclose contact information to consumers, sign returns, and subject preparers and their advertising to enforcement actions, including investigations and injunctions.

Who It Affects

• Individual tax preparers who are not currently licensed and would need to register, meet qualifications, pass exams, complete continuing education, and renew or risk penalties.
• Taxpayers/consumers who hire tax preparers, who would gain protection through required disclosures, verified registration, and enforcement against unregistered or unethical preparers.

Key Provisions

• Registration program for individual tax preparers; unregistered persons may not provide Alabama individual income tax return services.
• Exemptions for licensed CPAs, attorneys, IRS enrolled agents, and others with approved certifications.
• Minimum qualifications for registration: no felony related to tax prep, 18+, high school diploma or GED, U.S. citizen or legally present; application required.
• Examinations and issuance of registration number after passing; registration valid until December 31 and renewable with continuing education.
• Department authority to investigate complaints, issue subpoenas, seek injunctions, and impose civil penalties for violations; class C misdemeanor for certain unregistered practice.
• Continuing education requirements for renewal; providers may include IRS/state board-approved CE.
• Recordkeeping: preparers must keep tax return records for at least 3 years.
• Consumer disclosures: preparers must provide name, registration number, address, email, and phone; must sign returns; cannot advertise as certified or registered; disclosures must be written and posted on websites.
• Advisory Council: Alabama Taxpayer Protection and Assistance Act Advisory Council (up to 10 members) to advise on exams, CE, and certifications; meets quarterly; non-compensated.
• Effective date: January 1, 2018.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Tax Preparers