By PHILLIP RAWLS, Associated Press Writer
Thursday, January 29, 2009
Someone can open a commercial tax preparation business inAlabamawithout any training or licensing.
Now a bipartisan group of legislators wants to change that, and they have the help of the state’s top tax collector.
A group of Democratic and Republican legislators announced Thursday they are drafting legislation to require testing and licensing of commercial tax preparers. The bill would not affect taxpayers who fill out their own tax returns.
Alabama is one of 47 states that do not regulate commercial tax preparers.
Sen. Quinton Ross, D-Montgomery, said he’s seen too many examples of “fly-by-night tax preparation places” charging enormous fees to unsuspecting customers.
“There really is a problem inAlabama,” said state Revenue Commissioner Tim Russell, who joined legislators at a news conference. Russell said he is providing advice to the legislators as they prepare the bill for the legislative session starting Tuesday.
In the Senate, Ross is working on the bill with Senate Minority Leader Jabo Waggoner, R-Vestavia Hills. Those pushing it in the House include Democratic Reps. Tammy Irons of Florence and Laura Hall of Huntsville and Republican Rep.CamWard of Alabaster.
The push for the legislation started with ImpactAlabama, a nonprofit group that trains college students to prepare tax returns for free for low-income families. The students pass a test provided by the Internal Revenue Service before working on tax returns.
The proposed legislation would exempt accountants, lawyers who prepare taxes, and any tax preparers who have passed an IRS test. The legislators said that’s because accountants and lawyers are already in regulated professions, and the other tax preparers have demonstrated basic competency.
Jeannine Birmingham, president of the Alabama Society of Certified Public Accountants, said Thursday her group supports the legislators’ efforts.
