NYC Tax Practitioners - Beware - NYC Dep't of Consumer Affairs

[Uncle Sam]

Here's a link disclosing the NYC Department of Consumer Affairs new policy beginning 2019 for tax practitioners who practice in NYC:
gallery.mailchimp.com/c7c94bd632637ddbc11b7d77d/files/...

[ATSMAN]

Tax Preparers are now required to conspicuouslv post in Enqlish and in anv other lanquaqe used to attract business: . Price list signs at the business entrance or in the immediate area where consumers arrive and are met for business. Price list signs must also be conspicuously posted at each point where orders are placed or payment is made, including at each counter or desk; ...

NYS must treat Tax Prep business like Chinese take out shops where the menu with prices is posted on the window? Does this rule extend to law firms etc.

NYS does not make it easy to run a business, no wonder they are losing to other states particularly southern states.

[New York Enrolled Agent]

Here's a link disclosing the NYC Department of Consumer Affairs new policy beginning 2019 for tax practitioners who practice in NYC:
gallery.mailchimp.com/c7c94bd632637ddbc11b7d77d/files/...

Uncle

Does this only apply to tax preparers?

Certain individuals (EAs, CPAs and attorneys) are typically exempt unless they do RALs. Do these exemptions hold?

§ 20–742 Exemptions.

b. An attorney at law who advises or assists in the preparation of income tax returns in the practice of law and the employees thereof.

d. A certified public accountant and the employees thereof.

g. An agent enrolled to practice before the internal revenue service pursuant to section 10.4 of subpart A of part ten of title thirty-one of the code of federal regulations.

[Uncle Sam]

From the reading of that notice 20-742 isn't even mentioned. That may have been added AFTER the law was passed.
But what I find interesting is the under the 2nd bullet point on the first page - mention is made of
"Disclosure sign or signs at business entrance must be shown if the tax preparer is not licensed by the State Board for Public Accountancy or a member of the New York State Bar, if true; and the tax preparer or its agent will not represent the customer at any audit, if true".
These would be interesting issues for the practitioner groups to discuss with DCA before tax season begins.

[New York Enrolled Agent]

From the reading of that notice 20-742 isn't even mentioned. That may have been added AFTER the law was passed.
But what I find interesting is the under the 2nd bullet point on the first page - mention is made of
"Disclosure sign or signs at business entrance must be shown if the tax preparer is not licensed by the State Board for Public Accountancy or a member of the New York State Bar, if true; and the tax preparer or its agent will not represent the customer at any audit, if true".
These would be interesting issues for the practitioner groups to discuss with DCA before tax season begins.

The article talk about the provisions of 20-740 which applies to tax preparers. 20-742 sets exemptions for those who would be considered tax preparers.

You need to read the administrative code - 20-740 and 20-742 are all part of the same section on tax preparers. I think the exemptions apply in this situation.

[kathyc2]

I don't see why this is a big deal. I'll always give an estimate to new clients if they ask. The vast majority of services we purchase has a firm price or estimate, so unless there are unusual circumstances, I don't see why tax prep should be different.

[Uncle Sam]

The big deal is you're dealing with a NYC citywide diverse population of mixed ethnic groups of varying socio-economic populations who don't understand the distinction between licensed and unlicensed tax professionals. Nor do they understand the ethical responsibilities of those providing those services. Each week I receive e-mails from the NYS Attorney General's office of unethical preparers who hav e been caught who have literally ripped off the uneducated lower classes of taxpayers who have fallen prey to unethical preparers by preparing returns in violation of Circular 230 requirements.
What I find objectionable to this NYC policy is the publicly posting fixed prices for services - where as the person or firm preparing or providing tax services to members of the public deals with unknown variables of time, data, orderliness of the tax data in preparing the returns or various services, and additional time is needed to properly prepare those services, that clients don't provide you with when you first meet.
I personally am NOT effected by this because I don't practice in NYC, reside and practice 35 miles northwest of NYC and am a licensee of NYS Board of Public Accountancy as well as being an Enrolled Agent.

[kathyc2]

Those issues are not limited to NYC. Most clients are shocked to learn that tax preparers who they give their most sensitive information are less regulated than a manicurist.

[ATSMAN]

They are all over my neck of the woods!

The government contended that “common patterns” across top franchisees included concocting income for customers to claim the Earned Income Tax Credit, fabricating expenses to reduce income tax liability, claiming improper or false dependents, and falsifying education expenses.

https://www.taxprotoday.com/news/liberty-tax-parent-settles-with-justice-department-......

[Uncle Sam]

These are the issues that crop up each time the government attempts to approach the "consumer protection" issue by broad brushing the entire occupation instead of focusing in on the real issues. They don't understand that not everything can be measured equally as business terms and understanding of the facts by every client is different.
Can you picture a new immigrant to this country who can hardly speak English, who works as an unskilled laborer, walks into a NYC choice rent district of a national firm CPA office with incomplete information to prepare the tax return, looking for a fixed price list in the waiting room? Or expecting a preparer to be fluent in speaking that person's foreign language?

[ttbtaxes]

I'd have to look a little deeper but I'd be willing to bet the farm this silliness is strictly limited to New York City and, even then, CPAs and attorneys are exempt. Does anyone really think that boutique and top-tier CPA and law firms in lower Manhattan are going to be posting signs for fixed fees?

[TAXNJ]

I'd have to look a little deeper but I'd be willing to bet the farm this silliness is strictly limited to New York City and, even then, CPAs and attorneys are exempt. Does anyone really think that boutique and top-tier CPA and law firms in lower Manhattan are going to be posting signs for fixed fees?

Think you need to add EAs to the exempted list if you are referring to NY dept. of taxation list.