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You may think me petty to complain about having to pay $100.00 to the State of New York in order to be able to prepare NYS tax returns for clients, even though I have absolutely no physical presence in the State of New York. Hey, it’s just another cost of doing business – fully deductible and eventually paid for by the client.
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It is the principal of the thing. Why should a state in which I neither live nor work require me to register and pay a fee to help a client prepare a required state form? If I were representing 1040 clients in matters before the New York Department of Taxation and Finance on audit or other related issues it would be one thing. But all I am doing is preparing a state tax return in my home office in New Jersey, most times for residents of the State of New Jersey who just happen to work in New York.
You may think me petty to complain about having to pay $100.00 to the State of New York in order to be able to prepare NYS tax returns for clients, even though I have absolutely no physical presence in the State of New York. Hey, it’s just another cost of doing business – fully deductible and eventually paid for by the client.
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It is the principal of the thing. Why should a state in which I neither live nor work require me to register and pay a fee to help a client prepare a required state form? If I were representing 1040 clients in matters before the New York Department of Taxation and Finance on audit or other related issues it would be one thing. But all I am doing is preparing a state tax return in my home office in New Jersey, most times for residents of the State of New Jersey who just happen to work in New York.
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Hey, if I were a barber with a shop in New Jersey will NYS require me to register and pay a fee if I cut the hair of NYS residents?
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But perhaps more important, let me quote from a comment in an email response I received from a representative of a tax preparation membership organization –
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“I fear that, if they’re successful with this, other states will take up the practice. Most states today are in budget strife and they’re looking for easy revenue sources.”
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When clients move out of New Jersey and to another state many will continue to send me their 1040, and new state return, to prepare each year. Plus I have a few clients with business or investment interests in other states. As a result I do resident and non-resident state tax returns for Kansas, Maryland, North and South Carolina, Pennsylvania, Rhode Island, and Virginia. What if I had to pay a $100.00 fee to each state for which I prepare a tax return!
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When clients move out of New Jersey and to another state many will continue to send me their 1040, and new state return, to prepare each year. Plus I have a few clients with business or investment interests in other states. As a result I do resident and non-resident state tax returns for Kansas, Maryland, North and South Carolina, Pennsylvania, Rhode Island, and Virginia. What if I had to pay a $100.00 fee to each state for which I prepare a tax return!
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Luckily, in my case, I do not do more than 2 or 3 for each of these states per year, so I expect I would not be required to register and pay if the New York State idea becomes popular.
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The State of New York is not doing this to upgrade the level of competence among those who prepare its state income tax returns or in an attempt to increase compliance – like the IRS is considering with its recent review of the issue of registering and licensing federal tax preparers. There is no initial testing or other requirement to prove competence, or ongoing continuing education requirements to maintain registration. The only reason this is being done is because it is an easy way for New York State to raise money!
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The State of New York is not doing this to upgrade the level of competence among those who prepare its state income tax returns or in an attempt to increase compliance – like the IRS is considering with its recent review of the issue of registering and licensing federal tax preparers. There is no initial testing or other requirement to prove competence, or ongoing continuing education requirements to maintain registration. The only reason this is being done is because it is an easy way for New York State to raise money!
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The email I mentioned above also included the following statement -
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“I’ve heard some say ‘this is not good for the industry’. That’s true. But you know who it’s REALLY not good for? The taxpayer, that’s who. The taxpayer will wind up footing this as he usually does.”
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TAFN
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“I’ve heard some say ‘this is not good for the industry’. That’s true. But you know who it’s REALLY not good for? The taxpayer, that’s who. The taxpayer will wind up footing this as he usually does.”
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TAFN
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