Under current law, Certified Public Accountants, Attorneys, and Enrolled Agents are required to obtain a license or certification in order to prepare tax returns in Alabama.
However, there are few provisions in place to protect consumers against individual income tax preparers that repeatedly misrepresent information on their tax returns.
This legislation would require certain tax preparers to register with the Department, prior to preparing returns, which will help regulate services, prohibit unregistered persons from performing said services, and establish penalties for violators.
It would also establish qualifications for registration, requirements of disclosures to consumers, and exemptions to those obligated to register.
The legislation also establishes an Individual Tax Preparers Fund that will be used to provide for the cost associated with the administration and enforcement of this act.
Pending third reading on day 29 Favorable from State Government
Read for the second time and placed on the calendar
Read for the first time and referred to the House of Representatives committee on State Government
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 865
Melson motion to Adopt adopted Roll Call 864
Melson first Substitute Offered
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the Senate committee on Fiscal Responsibility and Economic Development
Source: Alabama Legislature