H7613 amends Rhode Island’s Tax Preparers Act of 2013 by renaming the chapter to the “Tax Preparers Act” and updating its definitions and enforcement provisions. The bill defines a “ghost preparer” as a paid tax return preparer who does not identify themselves on returns or comply with federal PTIN requirements, and it clarifies who counts as a tax return preparer for purposes of the chapter. It also requires preparers to sign returns and include their PTIN when filing with the Division of Taxation, and prohibits ghost-preparer conduct or any activity intended to facilitate it.
The bill strengthens civil penalties for misconduct by tax preparers. It imposes $500 penalties for failing to exercise due diligence on earned-income credit and property tax relief credit claims, and it authorizes larger penalties for willful misconduct, fraud, misleading taxpayers, or violating the chapter’s requirements. The tax administrator is also authorized to suspend or revoke a preparer’s privilege to file returns with the Division of Taxation, with hearing and court review procedures preserved, and to publish a list of preparers whose privileges have been suspended or revoked. The act takes effect immediately upon passage.
Impact
The bill would amend Chapter 44-68 of the Rhode Island General Laws to expand and clarify state oversight of paid tax return preparers. It creates explicit state-law definitions for ghost preparers, reinforces PTIN and signature requirements, adds penalty provisions tied to state credits and tax evasion-related conduct, and gives the tax administrator authority to suspend, revoke, and publicly list barred preparers. The measure primarily affects paid tax preparers, tax preparation businesses, and taxpayers who rely on them, especially in connection with earned-income credit and property tax relief claims.
Sentiment
The available voting history suggests broad support for the bill. It passed the House Committee on Corporations unanimously on the substitute version and then passed the full House by a wide margin, indicating that lawmakers generally viewed the measure as a consumer-protection and tax-administration enforcement bill. No committee transcript was provided, so there is no recorded debate to indicate significant opposition or amendments beyond the substitute version.
Contention
The main policy issue reflected in the bill is how aggressively to police tax preparer misconduct. Support is implied for stronger enforcement against ghost preparers, fraudulent filings, and preparers who mislead clients, while any potential concern would likely center on the scope of penalties, the suspension/revocation authority granted to the tax administrator, and the public posting of disciplined preparers. Because the bill passed overwhelmingly and no transcript is available, there is no evidence of major controversy in the recorded materials.