.
No progress to report on the repeal of the New York State law that requires tax preparers, regardless of where they live and work, who prepared TEN (10) 2008 NYS income tax returns and will prepare only one (1) 2009 NYS return to register and pay a fee of $100.00, unless they are CPAs or attorneys licensed to practice in the State of New York.
See my post “INCOME TAX PREPARER REGISTRATION - AN UPDATE” for information on the actions taken by the NY State Society of Enrolled Agents to repeal the law.
NYS Assemblyman David McDonough has introduced legislation in NYS will exempt Enrolled Agents from registering and paying the same as CPA's and attorneys but does not repeal the law, as it is expected to raise $3.6 Million.
I expect that if this bill passes the NYSSEA will be happy and will not continue with its legal action to repeal the requirement altogether. After all the NYSSEA is only concerned about Enrolled Agents who live and work in New York.
I hope that NATP, NSA, AICPA and NSTP would join forces to fight the application of these new requirements to tax preparers who live and work in states other than New York and have no physical presence in New York.
What would happen if the various membership organizations joined forces to acquire a legal opinion on this issue that stated New York does not have the authority to regulate "non-resident" tax preparers, and it asked all its non-New York members who would be subject to the new law to send a letter to New York that said the following -
Dear State of New York:
I am a professional tax preparer with absolutely no physical presence in the State of New York who happens to prepare New York State tax returns for some clients. Under your new law I am required to register with the State of New York and pay a $100.00 fee.
As I have absolutely no physical presence in New York State I sincerely believe that the State of New York does not have the authority to require me to register and pay a fee in order to continue to prepare New York state income tax returns for my clients.
{Cite legal argument here}
Therefore I refuse to register of to pay the fee.
Very truly yours,
John Q Taxpro
If the State of New York received 5,000 of the above letters would it spend the time and money to go after each and every one?
Just a thought.
I would agree that New York can register and require a fee from tax preparers who work in New York – actually preparing New York State tax returns in an office located within the physical boundaries of the state. But they have no right to make "non-resident" preparers register or pay. I like the following analogy in discussing this ridiculous requirement –
If I open a barber shop in White Plains, New York I am required, I expect, to register the business with the State of New York and pay for a commercial license.
But if I open a barber shop in Weehawken, New Jersey and I just happen to cut the hair of several individuals who live in New York State I would follow the rules and regulations concerning barber shops that exist in New Jersey, but I would have no obligation to register with and pay a fee to the State of New York.
TAFN
No progress to report on the repeal of the New York State law that requires tax preparers, regardless of where they live and work, who prepared TEN (10) 2008 NYS income tax returns and will prepare only one (1) 2009 NYS return to register and pay a fee of $100.00, unless they are CPAs or attorneys licensed to practice in the State of New York.
See my post “INCOME TAX PREPARER REGISTRATION - AN UPDATE” for information on the actions taken by the NY State Society of Enrolled Agents to repeal the law.
NYS Assemblyman David McDonough has introduced legislation in NYS will exempt Enrolled Agents from registering and paying the same as CPA's and attorneys but does not repeal the law, as it is expected to raise $3.6 Million.
I expect that if this bill passes the NYSSEA will be happy and will not continue with its legal action to repeal the requirement altogether. After all the NYSSEA is only concerned about Enrolled Agents who live and work in New York.
I hope that NATP, NSA, AICPA and NSTP would join forces to fight the application of these new requirements to tax preparers who live and work in states other than New York and have no physical presence in New York.
What would happen if the various membership organizations joined forces to acquire a legal opinion on this issue that stated New York does not have the authority to regulate "non-resident" tax preparers, and it asked all its non-New York members who would be subject to the new law to send a letter to New York that said the following -
Dear State of New York:
I am a professional tax preparer with absolutely no physical presence in the State of New York who happens to prepare New York State tax returns for some clients. Under your new law I am required to register with the State of New York and pay a $100.00 fee.
As I have absolutely no physical presence in New York State I sincerely believe that the State of New York does not have the authority to require me to register and pay a fee in order to continue to prepare New York state income tax returns for my clients.
{Cite legal argument here}
Therefore I refuse to register of to pay the fee.
Very truly yours,
John Q Taxpro
If the State of New York received 5,000 of the above letters would it spend the time and money to go after each and every one?
Just a thought.
I would agree that New York can register and require a fee from tax preparers who work in New York – actually preparing New York State tax returns in an office located within the physical boundaries of the state. But they have no right to make "non-resident" preparers register or pay. I like the following analogy in discussing this ridiculous requirement –
If I open a barber shop in White Plains, New York I am required, I expect, to register the business with the State of New York and pay for a commercial license.
But if I open a barber shop in Weehawken, New Jersey and I just happen to cut the hair of several individuals who live in New York State I would follow the rules and regulations concerning barber shops that exist in New Jersey, but I would have no obligation to register with and pay a fee to the State of New York.
TAFN
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