SB402 Alabama 2016 Session

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

To provide for the registration and regulation of certain individual tax preparers; to provide for registration exemptions; to prohibit individuals not registered from conducting tax preparation services; and to provide penalties for violations; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.