Individual Tax Preparers - Code of Ethics, Notification of Actions, Enforcement, and Penalties (Stop Scam Tax Preparers Act)
Impact
The implementation of SB675 is expected to significantly affect the standards and practices of tax preparation services in Maryland. By enforcing a code of ethics and establishing penalties for non-compliance, the bill aims to protect consumers from fraudulent tax preparers. The financial penalties resulting from violations will be directed to the Tax Clinics for Low-Income Marylanders Fund, ensuring that some of the funds collected are used for supporting tax education and assistance for underserved populations.
Summary
Senate Bill 675, known as the Stop Scam Tax Preparers Act, is legislation aimed at establishing a code of ethics and professional conduct for individual tax preparers in Maryland. The bill requires the State Board of Individual Tax Preparers to publish a mandated code of ethics by January 2026 and to notify the Comptroller about actions taken against preparers for violations. This legislation intends to enhance the standards expected from tax professionals and to provide a mechanism for enforcement and accountability.
Sentiment
The sentiment surrounding SB675 seems to be largely positive, with strong support from consumer protection advocates who view the bill as a necessary step in safeguarding taxpayers, particularly vulnerable individuals who might fall prey to unscrupulous tax preparers. However, there might be concerns from within the tax preparation community regarding the potential regulatory burdens imposed by the new requirements.
Contention
While most responses to the bill have been favorable, there could be instances of contention regarding the enforcement measures and the definition of conduct that may warrant disciplinary action. Establishing clear guidelines for the enforcement of ethical standards is critical to prevent arbitrary enforcement that could harm competent tax preparers who may inadvertently run afoul of new rules.
Provides penalties for tax preparers that purposefully mislead their clients or act as ghost preparers of tax returns and requires the tax administrator publish a list of tax preparers who have had their privileges to prepare returns revoked or suspended.
"The Reliability, Preparedness, and Storm Response Act of 2020"; requires public utilities to file certain information concerning emergency preparedness with BPU and increases certain penalties.
Tax preparation services; tax preparers prohibited from marking a tax return to designate a contribution to the state elections campaign account without explicit instruction from the taxpayer.