Requires paid tax preparers to sign and provide an identification number on tax returns, reports, and claims filed with the Department of Revenue. (7/1/18) (EN INCREASE SG EX See Note)
Impact
The bill establishes clear penalties for non-compliance, imposing a fine of fifty dollars for each instance of failing to sign a prepared document or omit the required identification. Furthermore, there is a cap on the annual penalties that a paid preparer can incur, not exceeding twenty-five thousand dollars. This shift in regulation signifies a proactive approach by the Louisiana government to enhance the integrity of tax filings and discourage malpractice. The new requirements are applicable to various types of tax documents, making it a comprehensive regulation in the sphere of tax preparation.
Summary
SB237 aims to enhance accountability and traceability in tax preparation by requiring paid preparers to sign returns, reports, claims for refund, and other claims submitted to the Louisiana Department of Revenue. This measure is designed to ensure that individuals who prepare tax documents for compensation can be held responsible for their work. Alongside the signing requirement, the bill mandates the inclusion of specific identifying information such as a preparer tax identification number or a federal employer identification number. This is expected to facilitate enforcement and compliance verification by the state's revenue department.
Sentiment
Overall, the sentiment surrounding SB237 appears generally positive among legislators who view it as a necessary step to improve the accountability of tax preparers. Supporters believe that the bill will not only protect taxpayers but also uphold the integrity of the tax preparation industry. However, there may be concerns from practitioners who resist additional regulations, fearing that it could complicate their operations or place undue burden on their businesses. The discussions around the bill indicate a recognition of the balance needed between regulation and the efficiency of the tax preparation process.
Contention
Notable points of contention include the defined scope of what constitutes a 'paid preparer,' which could exclude employees working for a company from these requirements. Some may argue that this exemption could weaken the bill’s impact by allowing individuals working within larger organizations to bypass accountability. Additionally, there may be disagreements over the sufficiency of the penalties prescribed for non-compliance, with some stakeholders advocating for stricter measures to ensure adherence to the new requirements.
Provides for an annual reporting requirement by certain nonprofit entities for certain sales tax exemptions. (7/1/16) (Item Nos. 7, 8, 11, 12, 14, 15, 19-24, 32) (EN SEE FISC NOTE GF RV See Note)
Provides for the tax credit for ad valorem taxes paid on inventory by taxpayers included in one consolidated federal income tax return. (gov sig) (EN DECREASE GF RV See Note)
Authorizes the secretary of the Department of Revenue to refuse to register or issue or may revoke a state sales tax resale certificate to new business if the business reorganization was intended to evade payment of sales and use or withholding tax. (7/1/18) (EN SEE FISC NOTE SG RV See Note)