Discussion:Attention: NYS Tax Preparers

Here's the link: http://www.tax.state.ny.us/pdf/memos/multitax/m09_11c_9i_10m_3mctmt_4r_15s.pdf

Well, now the States of NJ, CT, MA, PA etc will do same for those not licensed in their states.

Any insight on whether the NYSSEA weighed in on this prior to passage? Or was this a pure surprise?

So I agree, as this document is written, non-NY CPAs and attorneys who prepare NY returns will also have to pony up.

However - the NYS Senate went into limbo at end of June for about a month due to 2 State Senators switching parties causing turmoil and not being able to convene - 2 Democrats turned Republican and made the Senate a stalemate of 30/30 in terms of party majority. Then the 2 idiots went back to being Democrat and returned to session. There wasn't any NYSSEA publicity to members about this, until it was too late.

The membership will be advised of the bill number so they can write their state Senator and Assembly member urging their support, and the firm of McDermott Will & Emery in Manhattan was engaged to start an action in NYS Supreme Court, NY County to have the law declared unconstitutional. The basis for the lawsuit is the constitutional doctrine enunciated in Sperry v. Florida, 373 U.S. Supreme Court 379 (1963).

In Sperry the U.S. Supreme Court clearly and unambiguously ruled that a state:

“may not enforce licensing requirements which, though valid in the absence of federal regulation, give ‘the State’s licensing board a virtual power of review over the federal determination’ that a person or agency is qualified and entitled to perform certain functions, or which impose upon the performance of activity sanctioned by the federal license additional conditions not contemplated by Congress.”

http://nj.findacase.com/research/wfrmDocViewer.aspx/xq/fac.%5CNJ%5CNJ2%5C1980%5C19800326_0040382.NJ.htm/qx

there's no reason why such fees can't be imposed on New York and Philadelphia practitioners preparing NJ income tax returns.

I would feel even angrier about this if I were still living in NYS.

Kevin hits the nail on the head: who cares about proficiency, just give us the money.

Out of state tax and in state tax preparers must register with the tax dept. At the last minute NYS CPAs were exempted. We already pay fees to the state for our license. Employees of businesses must also be registered, not just the owner.

There is no test or competency in the area of taxation. Because you are registered with the tax dept, doesn't mean that you know anything about the subject.

You may be able to find the details on the NYSSCPA web sight. There were many other changes including the dates of CPE year.

That is the position being taken on other boards also. But I see room for interpreting the new law to mean "If you prepare 10 or more returns in total, not just 10 or more NEW YORK returns (my emphasis added).

Guess some interpretation and/or clarification is needed; might be nice if some of our dues collecting associations step up here and help a bit.

For my practice - I have ONE New York return (a non-resident return, needed because of a K-1 with NY source income). I can't see adding $ 100 to that one bill; wouldn't be fair to the client! And not fair to me to just eat the cost....but may have to.

I've read it several times & feel it is ambiguous - guess we need an attorney to interpret (Crow where are you?)

Maybe I'll see if Harry will share his PBR's and just forget about the whole issue. Here's hoping you're right & I'm wrong.

Hopefully this means "New York" returns.

It's more than just paying a fee to the tax dept.

'may not enforce licensing requirements which, though valid in the absence of federal regulation...'"

This is a correct statement of the law. However, as it appears from the Oregon example, that federal regulation has NOT preempted the preparation of even federal tax returns.

Oregon, and I suspect New York, would not interfere with an EA's "practice before the Internal Revenue Service" as defined in Circular 230. Any attempt to restrict such practice would fail, not only under Sperry but under more recent case law. But to quote Cir. 230, "anyone can prepare tax returns". In short, there is no federal regulation of that particular activity.

http://www.natptax.com/2009nyregreq.pdf

As mentioned above, there is no reciprocity for non-NY CPAs. NY just wants your money.

So, for us folks preparing less than 10 NYS returns, but more than 10 total returns in 2010, is the fee required? I don't think this was their intention, but it looks like that's what's happening.

Also, if we meet the "commercial tax preparer definition" do we really need to register each employee of the firm that prepares tax returns? I am with a PA firm, only one preparer is doing NYS returns, but it seems we have to have all employees registered. Heavens.

In going through the application, I wondered if you did less than 10 in 2009, but paid the $100 expecting to file more than 10 returns for 2010, and then later found you only filed eight, would the fee be refunded. I believe the chances of refund are slim and none, and slim just left.

If you all wanna be my employees, for a mere $50 employee registration fee, we could work somethin out, KWIM? and for you ladies who wanna be my employees, well, hey now.