New York State tax preparers and facilitators face penalties for failure to post fee and other info

As of January 01, 2022, New York State Tax Law §32 now requires all New York State tax return preparers and facilitators providing these services to clients to post specific business information at all sites in which they offer tax return preparation services / their place of business. 

The New York chapter of the National Association of Tax Professionals (NATP) reminds all tax return preparers and facilitators that failure to do so can result in penalties of up to $10,000 annually. 

Specific details and links to key documents are included below.

New York State Department of Tax and Finance posting requirements for tax preparers and facilitators

All tax return preparers or facilitators must post the following items – prominently and conspicuously – at every location where tax preparation or facilitation services are provided to clients. 

A current copy of the preparers New York State Certificate of Registration 

This certificate is issued by the Tax Department and is required unless the preparer/facilitator is exempt from registration and therefore does not have a Certificate of Registration. 

• For more information, including who is exempt from this requirement, review the New York State Tax Preparer Registration and Education fact sheet, prepared by the New York Chapter of the NATP.  

A current price list 

This price list must be in at least fourteen-point type and must include, but is not limited to, the following information:  

• A list of all your tax return preparation and facilitation services. 
• The minimum charge for each service, including each type of federal or New York State tax return prepared or facilitation services provided 
• A list of the factors – and their associated fees – that may increase the stated charge. 

The New York Chapter of the NATP created a sample pricing sheet for reference purposes. 

Tax Department’s Publication 135.1 

There are two versions of the Consumer Bill of Rights Regarding Tax Preparers, each with their own requirements. 

• Publication 135.1 must be posted at your place of business. 
• Publication 135 or the New York City Consumer Bill of Rights if within New York City limits, must be provided to each potential client. This must be a hard copy. 

Reminders for New York State tax preparers and facilitators

Tax preparers cannot charge a separate fee to e-file New York State tax documents. 

Except for the fee charged by the creditor or bank that provides the refund anticipation loan (refund advance) or refund anticipation check (refund transfer), tax preparers and facilitators cannot charge a fee or impose any fee or other consideration for making or facilitating a loan or check. 

Non-compliance penalties assessed by the New York State Department of Tax and Finance 

Any tax return preparer or facilitator who fails to comply with any of the new posting requirements, the New York State Department of Tax and Finance may assess fines as follows: 

• $500 – for any failure – for the first month of noncompliance 
• $500 – for any failure – for each subsequent month of noncompliance, up to $10,000 in a calendar year