2020-01: Preparers may need to disclose fees, access to free tax preparation services - Spidell

2020-01: Preparers may need to disclose fees, access to free tax preparation services


AB 1140, if enacted, would require CTEC-registered tax preparers (but not CPAs, lawyers, or enrolled agents) to:

  • Disclose their “usual and customary” tax preparation fees up front to clients;
  • Inform their clients that individuals with incomes below $66,000 may be eligible for free online tax preparation services and free in-person tax preparation services through the IRS’s Volunteer Income Tax Assistance (VITA) program if they have incomes below $55,000; and
  • Provide written disclosure of the tax preparation fees actually charged and various tax preparer identification information.

A penalty equal to $750 will be imposed against repeat violators.

The bill was passed by the California Assembly but must be passed by the California Senate and signed by the Governor to go into effect. We will keep you posted on the latest developments.

If you wish to voice your opposition to this bill, contact your state senator and assembly representative. For your senator or assembly person’s contact information, go to:

http://findyourrep.legislature.ca.gov/

To read the bill, go to:

https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1140

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