With the April 15 tax deadline approaching, state officials want New Yorkers to double-check who they trust with their returns.
The New York State Department of Taxation and Finance is urging taxpayers to review the state’s Consumer Bill of Rights Regarding Tax Preparers before hiring someone to file on their behalf.
“The vast majority of tax preparers are honest professionals. However, some take advantage of their position of trust to scam customers out of their hard-earned money,” Acting Commissioner Amanda Hiller said. “The Tax Department offers multiple ways to file your own taxes for free though our website, www.tax.ny.gov. Should you decide to pay for a preparer, I encourage you to review the Consumer Bill of Rights Regarding Tax Preparers to protect yourself.”
The deadline to file returns and pay any tax owed, or request an extension, is midnight on April 15.
Under state law, registered tax return preparers must post their New York State Tax Preparer Registration Certificate and a price list. They must also tell customers up front whether they will represent them in an audit.
Preparers must ask for accurate information about income, expenses, and family details. They must allow clients to review their completed return, including bank account information, before signing.
The rules also require preparers to sign the return and include their preparer tax identification number and New York tax preparer identification number, if applicable. They must e-file the return, provide a copy of the filed return, and give clients a year-round address and phone number for follow-up questions.
If a preparer offers a refund anticipation loan or refund transfer, they must provide a written statement explaining any interest and fees.
Preparers must also post Publication 135.1, the Consumer Bill of Rights Regarding Tax Preparers, and provide a free copy of Publication 135 or the New York City Consumer Bill of Rights before any discussions.
Tax Department investigators conduct compliance checks during filing season. Officials say preparers who fail to follow the rules face fines and possible suspension of their registration.
The department also encourages taxpayers to consider free filing options. Many New Yorkers qualify to file both federal and state returns at no cost through the state’s Free File program. Hundreds of thousands use the service each year, saving an average of $269 in preparation fees.
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