(a) Definitions.
Certified public accountant and public accountant. "Certified Public Accountant" and "Public Accountant" mean any individual who fits within the definitions set forth in Article 149 of the Education Law.
Income tax return or tax return. "Income tax return" or "tax return" means a federal, state or city tax return of a natural person, including joint returns and all related schedules.
Tax preparer. "Tax Preparer" means any individual or business that prepares any income tax return, for a fee, to obtain or retain clients, or in connection with the sale of items or services. It does not include an individual employed to prepare tax returns by another individual or business entity if that individual makes clear that he or she is only an employee and that his or her employer will sign the taxpayer's return.
(b) Prohibited practices. Tax preparers may not:
(1) ask a taxpayer to sign a blank or incomplete tax return;
(2) misrepresent their qualifications;
(3) reveal any information appearing on a tax return or any information gathered for its preparation, including the fact of preparation and the content of solicitation lists, to any person or business other than:
(i) the taxpayer;
(ii) a person designated in writing by the taxpayer; or
(iii) anyone authorized to receive such information by court order or by law;
(4) make any deceptive statement designed to persuade taxpayers to use, or not to use, a tax preparer;
(5) induce or attempt to induce a taxpayer to violate any governmental law, rule or regulation;
(6) use the word "accountant" in any advertisement unless at least one Certified Public Accountant or Public Accountant is present at each tax preparing location during all business hours, or unless the tax preparer immediately follows the word "accountant" with a conspicuous and prominent disclaimer that the tax preparer is not licensed by the state as a Certified Public Accountant or Public Accountant. If a tax preparer uses the word "accountant" without the disclaimer, then a Certified Public Accountant or Public Accountant employed at the tax preparing location must exercise control over all tax returns prepared at that location;
(7) use the term "expert," "master," "consultant," "specialist" or any similar terms in an advertisement unless the tax preparer's relevant education or experience is also disclosed in the advertisement. There must be a reasonable basis for any claims of expertise;
(8) alter a tax return after it has been signed by the taxpayer, without the taxpayer's written consent;
(9) charge a fee based upon the amount of tax owed or refund due.
(c) Required practices.
(1) Tax preparers that advertise their tax preparation services in a manner designed to reach the general public must post; in English, prominently and conspicuously at the public entrance to the tax preparer's business premises or in the immediate area where consumers arrive and are met for business by the tax preparer:
(i) a price list sign stating exactly how their fees are computed. The price list must contain:
(a) a list of services offered by the tax preparer;
(b) the minimum fee charged for each service, including but not limited to the fee charged for each type of Federal or New York State return;
(c) factors which may cause the fee to be higher than the minimum fee and, for each factor listed, the additional fee and/or the range of possible additional fees charged when the factor applies.
(ii) a disclosure sign or signs stating that:
(a) the taxpayer is entitled to receive a written estimate of all fees before receiving services for which the tax preparer is charging a fee;
(b) the taxpayer is entitled to receive a copy of every tax return prepared, at the time the original is given to the taxpayer for filing;
(c) that both the tax preparer and the taxpayer must sign every tax return;
(d) that the tax preparer is not licensed by the State Board for Public Accounting, or is not a member of the Bar of the State of New York, or both, if such is true;
(e) that the tax preparer or an agent will not represent the taxpayer at any audit, if such is true. ("Represent" means to appear before any government tax administering authority as attorney, Certified Public Accountant or enrolled agent. Failure to make this disclosure shall mean that the tax preparer, if lawfully authorized, agrees to represent the taxpayer or to provide representation.)
(2) The price list sign required by subparagraph (i) of paragraph (1) of this subdivision shall also be posted prominently and conspicuously at each point at which orders are placed and/or payment is made, including at each counter or desk, except where a tax preparer is doing business at a consumer's home or business, in which case the tax preparer must give each consumer a hard copy of the price list prior to any discussion with the consumer. Compliance by a tax preparer with this requirement shall be deemed to satisfy the requirements of § 20-750(a) of the Administrative Code and 6 RCNY § 5-70(a).
(3) Tax preparers must:
(i) sign every tax return prepared;
(ii) give a copy of every tax return prepared to the taxpayer, at the time the original tax return is given to the taxpayer for filing;
(iii) provide the taxpayer with a statement of the charges for each tax return or schedule prepared;
(iv) return any of the taxpayer's personal papers upon request, when the original tax return is given to the taxpayer for filing, unless specifically permitted to retain such papers under State law.
(d) Refunds. Tax preparers may not:
(1) guarantee a tax refund, or guarantee that the taxpayer will not be audited by any government tax agency;
(2) request a taxpayer to assign to the preparer any portion of the refund due;
(3) use their addresses on a tax return as the place to which a refund should be mailed, unless the taxpayer has signed a power of attorney containing such authorization. A fiduciary with authority to handle a taxpayer's financial matters is not required to obtain this power of attorney;
(4) claim to give taxpayers an "instant tax refund" that is actually an interest-bearing loan unless that fact is disclosed to the taxpayer in accordance with Federal and State law.
(e) Records. Each tax preparer shall retain a copy of every tax return prepared for a period of at least three years from the preparation date or the due date of the return, whichever is later.
(f) Disclosure in foreign languages.
(1) In addition to English, all disclosures required by this section must be made in any other language which the tax preparer uses to attract customers.
(2) For purposes of this section, failure to post each separately enumerated notice requirement constitutes a separate violation for which a penalty will be assessed.
(g) Exemption. Any individual or business which prepares income tax returns as an adjunct service to year-round fiduciary activities provided in the regular course of business for its customers is exempt from this section. If the business also offers individual tax return preparation services which are not related to such fiduciary activities, this section applies to those services.
Example: A bank trust department offers its services for a fee as trustee on personal trust accounts. The bank advertises that preparation of the beneficiaries' personal income tax returns is available to the beneficiaries of any trust for which it is trustee. This section does not apply to this tax preparation service. If, however, the bank has an agreement with a tax preparation service, under which the service would supply tax preparation services to the public at various branches of the bank, the bank is subject to this section. If the bank provides the service by its own employees, it is subject to this section.
(Amended City Record 12/14/2017, eff. 1/13/2018; amended City Record 7/5/2019, eff. 8/4/2019)