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Have you heard what the DFBs (clean version = “damned fool bureaucrats”) in Albany are trying to get away with?
According to the New York State Department of Taxation and Finance website (highlight is mine) –
“A new law requires the individuals described below to register each year with this department. Some must also pay a registration fee. If you are required to participate, you can register online starting in early November.”
Who must register and pay (again the highlight is mine)?
”Generally, you must register if you do one or both of the following:
• prepare New York State income tax returns in 2010 as a tax return preparer
Have you heard what the DFBs (clean version = “damned fool bureaucrats”) in Albany are trying to get away with?
According to the New York State Department of Taxation and Finance website (highlight is mine) –
“A new law requires the individuals described below to register each year with this department. Some must also pay a registration fee. If you are required to participate, you can register online starting in early November.”
Who must register and pay (again the highlight is mine)?
”Generally, you must register if you do one or both of the following:
• prepare New York State income tax returns in 2010 as a tax return preparer
• help to issue or administer a refund anticipation loan or refund anticipation check
You must pay a $100 registration fee if:
• you were paid to prepare 10 or more New York State tax returns in 2009, and will prepare at least one personal income tax return in 2010; or
You must pay a $100 registration fee if:
• you were paid to prepare 10 or more New York State tax returns in 2009, and will prepare at least one personal income tax return in 2010; or
• you will be paid to prepare 10 or more tax returns for 2010.”
They are not talking about those who prepare 100 or 50 or 25 NYS returns during the season – but 10. And if you prepared 10 this year you must pay $100 this year if you plan to prepare only 1 2009 NYS return! So I can’t even count my NYS returns and when I come to #9 stop.
I can just imagine the reaction of the client of the preparer who did 11 NYS returns this year but will only do 1 2009 NYS return when he gets his bill and discovers that his fee has been increased by $100.00!
Exempt from registration and paying are (I am sure you can guess what tops the list) –
• Certified Public Accountants (CPA) or Public Accountants (PA) currently licensed in New York State
• Attorneys currently licensed to practice in New York State
• Employees who are preparing tax returns under the direct supervision of a CPA, PA, or attorney licensed by New York State
• Employees of a business who prepare that business’ return or report
• Clerical employees
• Volunteer tax preparers
But not Enrolled Agents.
I have found nothing in the website announcement quoted above (click here) or the Office of Tax Policy Analysis Taxpayer Guidance Division memo (click here) that says that this law applies only to tax preparers who have a physical location in New York State.
They are not talking about those who prepare 100 or 50 or 25 NYS returns during the season – but 10. And if you prepared 10 this year you must pay $100 this year if you plan to prepare only 1 2009 NYS return! So I can’t even count my NYS returns and when I come to #9 stop.
I can just imagine the reaction of the client of the preparer who did 11 NYS returns this year but will only do 1 2009 NYS return when he gets his bill and discovers that his fee has been increased by $100.00!
Exempt from registration and paying are (I am sure you can guess what tops the list) –
• Certified Public Accountants (CPA) or Public Accountants (PA) currently licensed in New York State
• Attorneys currently licensed to practice in New York State
• Employees who are preparing tax returns under the direct supervision of a CPA, PA, or attorney licensed by New York State
• Employees of a business who prepare that business’ return or report
• Clerical employees
• Volunteer tax preparers
But not Enrolled Agents.
I have found nothing in the website announcement quoted above (click here) or the Office of Tax Policy Analysis Taxpayer Guidance Division memo (click here) that says that this law applies only to tax preparers who have a physical location in New York State.
.
It appears that NJ tax preparers who prepare NYS returns, and what preparer living or working in northern NJ does not do at least a few, and meet or will meet the 10 or more in 2009 (2008 returns) or 10 or more in 2010 (2009 returns) requirement must also register and pay!
Upon registration a preparer will be given a unique identification number assigned by the Tax Department that must be included on any New York tax return or report that requires the preparer’s signature. This will be, I expect, a different number from the preparer’s federal PTIN. Another number to remember!
The first I heard of this nonsense was Friday late afternoon when I was asked if I thought it was Constitutional in a DM Tweet from a NYS tax preparer. Nothing was mentioned about this at the NJ NATP Annual Conference I attended on Thursday.
The NYS preparer’s reaction to the requirement was - “It will just drive more ‘kitchen table’ people to not sign returns. A pain in the ass for sole practices like you and me”
While NYS certainly has the right to register its resident tax preparers (those with a physical presence in New York) and charge a nominal registration fee (I hardly think $100 is nominal), what gives it the right to govern non-resident preparers? This sounds illegal to me.
Does NYS require doctors living and working in New Jersey to register and pay a fee if they treat patients who live in New York?
I have contacted Board members of both the NJ and NY chapters of NATP for guidance. I want to know what I, and the chapters, can do to fight this ridiculous new requirement.
If New York State gets away with this you can be damned sure that New Jersey will promptly follow suit. The Garden State will take advantage of any possible way to continue to soak those who live and work here to provide pork to its politicians.
Why is it that when any government entity - federal, state, county, or municipal - runs into financial trouble the solution is always to raise existing or create new taxes and fees? It is never to reduce spending. And if they do propose to reduce spending it is always in programs that actually benefit the entity’s constituency and never in pork or entitlements.
I will keep you up-to-date on this issue here at NJTPB.
TAFN
Upon registration a preparer will be given a unique identification number assigned by the Tax Department that must be included on any New York tax return or report that requires the preparer’s signature. This will be, I expect, a different number from the preparer’s federal PTIN. Another number to remember!
The first I heard of this nonsense was Friday late afternoon when I was asked if I thought it was Constitutional in a DM Tweet from a NYS tax preparer. Nothing was mentioned about this at the NJ NATP Annual Conference I attended on Thursday.
The NYS preparer’s reaction to the requirement was - “It will just drive more ‘kitchen table’ people to not sign returns. A pain in the ass for sole practices like you and me”
While NYS certainly has the right to register its resident tax preparers (those with a physical presence in New York) and charge a nominal registration fee (I hardly think $100 is nominal), what gives it the right to govern non-resident preparers? This sounds illegal to me.
Does NYS require doctors living and working in New Jersey to register and pay a fee if they treat patients who live in New York?
I have contacted Board members of both the NJ and NY chapters of NATP for guidance. I want to know what I, and the chapters, can do to fight this ridiculous new requirement.
If New York State gets away with this you can be damned sure that New Jersey will promptly follow suit. The Garden State will take advantage of any possible way to continue to soak those who live and work here to provide pork to its politicians.
Why is it that when any government entity - federal, state, county, or municipal - runs into financial trouble the solution is always to raise existing or create new taxes and fees? It is never to reduce spending. And if they do propose to reduce spending it is always in programs that actually benefit the entity’s constituency and never in pork or entitlements.
I will keep you up-to-date on this issue here at NJTPB.
TAFN
2 comments:
What if a NJ preparer does not charge for the preparation of the New York return, but only charges for the Federal and NJ return prepared... as separately stated on his invoice?
Jack-
I had the same thought.
I will look into this strategy as I do more research on the issue, and will include my findings in a future post.
Off the top of my head I expect it would not be a way out if caught.
TWTP
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