New NYS Legislation for Tax Preparers

[Uncle Sam]

If you prepare even ONE tax return for a NY client - I suggest you read the information on the following link.
NYS now requires all tax preparers, except those already NYS licensed as CPAs and Attorneys (and PAs), to register and pay a registration fee.

http://www.tax.state.ny.us/pdf/memos/multitax/m09_11c_9i_10m_3mctmt_4r_15s.pdf

[WhiteOleander]

Just a point to be made. But, I don't think I am under the jurisdiction of NY state. I am subject to the laws of my state, Texas. True?

[MLINDER42]

Nys Prparers

In reading the memo you have to prepare at least 10 NY state returns to be forced to register.

[zeros]

Exam involved?

Is there a exam involved? How much is the registration fee?

[Uncle Sam]

New NYS Legislation

There's no exam involved for NYS.
The registration fee is $ 100 per year, and must be done online.
The first post has the link for the pertinent information.

[Y2KEA]

While I am not a NY preparer, I would think that being an EA would superscede any NY law.

[Uncle Sam]

NYS Legislation for Tax Preparers

Taken from NYS's notice:

Registration requirements
Each tax return preparer, as defined above, who will prepare at least one return in a
calendar year must register electronically with the Tax Department for that calendar year.

Is that clear enough?

[BOB W]

The only professional exceptions are NY CPAs and NY Lawyers. If a CPA is based in NJ he/she must cough up the $100 bucks. EAs are not recognized as a NYS licensed profession. I am a NY EA and I have to pay.

It is all about money> money> money..........................10,000 X $100= 1 million dollars, and there are probably more than 10,000 preparers in NYS (excluding CPAs and Lawyers).

NJ has a simular law but there is no $ fee.

For what it is worth, if they catch you being unregistered you have 90 days to pay the $100 along with your registration and any penalties will be abated. But keep in mind, once registered your fee is required every year that you prepare a NY tax return.

[DonPriebe]

It's not the principle, it's the money.

While I am not a NY preparer, I would think that being an EA would supersede any NY law.

Don't try to over-think this one. It's a revenue driven regulation. NY has a major budget shortfall. We need your cash. Just be grateful that all of the original proposals ($10 fee for paper returns, sales tax on tax preparation services, etc.) didn't pass.

[BOB W]

Don't try to over-think this one. It's a revenue driven regulation. NY has a major budget shortfall. We need your cash. Just be grateful that all of the original proposals ($10 fee for paper returns, sales tax on tax preparation services, etc.) didn't pass.

Don> don't forget about the mobility tax that did pass for us in southeastern NY.

It is a surtax on all NY based payroll of .0034 on each gross paycheck> that the employer has to pay. An employer that has a $500,000 annual payroll pays $1,700 with this surtax.

[S T]

However Electronic Returns

If we are EA's or CPA's out of State (outside NY) and electronically filing returns, even at $10 per return would be cheaper than paying the $100 for most of us. Or did I miss the part about Electronic Filing? Is there an exemption for Electronic Filing?

I only prepare about 3-4 NY returns per year, way under 10 returns, and most are Part Year or Non-Resident. I have one Full Year Resident which in 2009 migrated to Calif - all other's are non-resident returns only because of owning rental real estate or an internship part time job in New York.

So now I have to have to register pay $100 - and then figure out a way to charge that fee to my client?

Then what if I register and pay the fee to NY and that Calendar Year - I prepare NO New York returns?

Sandy

[BOB W]

Sandy> Like I said before,,, it is all about money. If you prepared no NY returns all I can say is THANKS for your contribution to NYS. Sorry for being so nasty. LOL..........

No exemptions for ELF.

Tack on $25 to each NYS return you do. If you only do 3 returns you eat the other $25.

[S T]

I know

Bob and Uncle Sam
I know it is all about money, but how many of us prepare out of state returns due to part year or non residents - Not resident returns

So if all states implement this, we will soon have to raise fees on all of our clients for the additional.

I prepare a lot of out of state returns due to clients migrating to another state and then retain them - but each state is probably 1 return here and 2 returns there for those states.

If I have only 1 NY return to prepare it still costs me $100 so I have to charge that client $100 - if I have 4 returns then I can spread it out and charge each client $25 - but I didn't make anything on the preparation - What about the years that I don't prepare any NY returns and I still have to Register?

NY is UNREASONABLE!

Sandy

[BOB W]

Yup, they are................... I guess those completed NY returns need to be sent to a NY preparer to sign and file ...???

[S T]

I thought about that

I did think about that, but then we have to pay you - but I guess I would rather see it go in your pocket instead of NY

Sandy