Governor Cuomo Announces 40 Tax Preparers Suspended Under New Regulations

Albany, NY - July 30, 2014 - Governor Andrew M. Cuomo today announced the results of an initial crackdown on tax preparers, a service which over seven million New Yorkers use, with the suspension of 40 tax preparers who failed to file their own personal income tax returns for 2011 and 2012. Once suspended, preparers cannot legally complete or file a client’s state tax returns for compensation.

“These new rules were put into place to protect taxpayers and ensure those entrusted to prepare tax returns abide by real professional standards,” Governor Cuomo said. “By disqualifying those who fail to live up to their responsibilities, we are strengthening the system and ensuring that the millions of New Yorkers who use a tax preparation service receive what they paid for.”

New York is only one of four states in the nation that regulates the tax preparer industry in an effort to reduce errors and omissions on tax returns, reduce fraud, and increase the level of competence and ethics among preparers. Governor Cuomo announced new regulations in March to identify and stop fraud and scams with new, comprehensive rules covering the 40,000 tax preparers throughout the state.

Commissioner of Taxation and Finance Thomas H. Mattox said, “It’s this simple: if you don’t file your own taxes, you shouldn’t be allowed to file returns for other New Yorkers. Without our new regulations, we would have no recourse against these preparers or others who are plainly unqualified.”

Under the new regulations, most paid tax preparers are required for the first time to pass a State competency examination, take annual continuing education, be at least 18 years of age and have a high school or equivalency diploma. The Tax Department’s Office of Professional Responsibility holds the authority to discipline a tax return preparer who fails to comply with his or her own federal, state or local tax obligations in a timely fashion.

The Tax Department also recently issued 56 suspension letters. Of these, 16 preparers who received the disciplinary notices filed a formal protest challenging the action, which is allowed under regulations, and these appeals are currently under review.

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If you are aware of any tax preparers who have engaged in illegal or improper conduct, please contact our office at 518-530-HELP or file a complaint online.

List of Suspended Tax Preparers