By Markeshia Ricks • mricks@gannett.com • February 13, 2009
Commercial tax preparers inAlabamaare closer than they’ve ever been to having to meet specific standards.
The Alabama Senate unanimously passed a bill Thursday requiring commercial tax preparers to meet testing and licensing standards.
State Sen. Quinton Ross, D-Montgomery, was the sponsor of the bill that passed the Senate during the fourth legislative day of 2009 session. He said it would be good for both tax preparers and consumers.
“This bill legitimizes the business for the taxpayers and the individual tax preparers,” he said.
The Alabama Taxpayer Protection and Assistance Act requires individual tax preparers to obtain a license that they would have to renew each year, and to take and pass an exam to demonstrate that they are proficient in tax knowledge. The bill also subjects tax preparers to a state oversight board.
Ross said while many commercial tax preparers operate lawfully, some do not. He said this bill would ensure that consumers will have their returns prepared by someone who is licensed and IRS-certified, whether it’s at Jackson Hewitt or a mom-and-pop operation.
“All individual tax preparers will need to make sure they meet the standards,” he said. “This bill treats everybody equally.”
The bill also has provisions that expand outreach efforts to educate people about the federal earned income tax credit (EITC), and allows a portion of the licensing fee collected to be used to provide free income tax assistance through nonprofit sites.
During floor debate on the bill Thursday, state Sen. Bobby Singleton, D-Greensboro, was one of the few senators who raised questions about the bill, although he had no objection to it.
He said that he wants to be sure that independent tax preparers were represented on the oversight board, and he hopes that the bill would be amended to that effect now that it is in the hands of the House. Ross said that he had no objection and would work with Singleton to draft an amendment.
Stephen Black, founder and president of ImpactAlabamaand the person who worked to bring about the legislation, said he was gratified to see the Senate act quickly and decisively in favor of working families. The Senate version of the bill will head to the House for its consideration. State Rep. Tammy Irons, D-Florence, is the sponsor of the House version of the bill.
