Authorizes the Department of Revenue to seek to enjoin preparers who engage in certain conduct. (7/1/18) (EN SEE FISC NOTE GF RV See Note)
Impact
The impact of SB238 is expected to enhance accountability among tax preparers and improve compliance with Louisiana's tax laws. By creating a clear framework for identifying and penalizing unethical practices, the bill aims to protect taxpayers from potential fraud and ensure that returns are prepared accurately and in good faith. This legislative change also signals a shift toward stringent regulatory oversight in the tax preparation industry, aiming to restore taxpayer confidence in such services.
Summary
Senate Bill 238 proposes significant changes to the regulation of tax preparers in Louisiana. The bill empowers the secretary of revenue to initiate legal proceedings against tax preparers who engage in specific prohibited behaviors that compromise the proper administration of state tax laws. This includes provisions for enjoining tax preparers from continued practice if they are found to have repeatedly violated the outlined rules, thus ensuring a higher standard for tax preparation service providers in the state.
Sentiment
Sentiment around SB238 appears largely supportive, particularly among lawmakers who emphasize the importance of consumer protection and the integrity of the tax system. Advocacy groups that focus on tax fairness and accountability likely view this initiative favorably. However, some concerns may arise from tax professionals who feel that increased regulation could impose additional burdens on their practice, leading to potential pushback from those within the tax preparation community regarding the bill's provisions.
Contention
Notable points of contention may center on the definitions and thresholds for what constitutes prohibited conduct, as well as the implications of enjoining professionals from practicing. The bill allows for proceedings based on past enjoinments in other jurisdictions, which might be seen as overly broad if not carefully monitored. Critics may argue that the language could lead to unwarranted penalties for tax preparers who make genuine mistakes while preparing returns, thus forcing a balance between necessary regulation and the professional autonomy of tax preparers.
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)
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)