A proposed bill seeking the licensing of tax preparers and facilitators has earned the backing of Secretary of the State Denise Merrill. She wants the licensing done through her office.
According to Merrill, in Connecticut, roughly 861,000 filers use tax preparation services. Nationally, around half of all returns were filed by unregulated preparers. If the national statistic is mirrored locally, that means around 400,000 filers are using unlicensed tax preparers.
She said every tax season, the Connecticut State Board of Accountancy receives numerous complaints and calls from individuals who have suffered harm at the hands of unregulated commercial tax preparers. These complaints include allegations of unfair business practices, professional misconduct, fraud, embezzlement, failure to file returns in a timely manner and failure to return client records. Merrill added without jurisdiction these matters are dismissed, leaving the complainant with no recourse other than civil or criminal court,
The legislation would create a Board of Tax Practitioners. It would oversee:
- registration;
- licensure;
- continuing education;
- renewal;
- disclosure; and
- enforcement for non-credentialed commercial tax preparers.
Merrill said the board’s functions would generate revenue and make the office self-sustaining. She said applicants would pay a $50 initial application fee for a tax preparer’s or facilitator’s license and violations would result in a penalty of up to $2,500.
