New Tax IssuesThe Stimulus Recovery Act along with the Omnibus Appropriations Act will bring about a new level of competition in the Tax Industry. Read more by clicking link above.
Legislation almost forced Tax Offices to paySpecial Interest groups led by Impact Alabama sought to pass a new licensing act that would have directly allowed them to use portions of the licensing fees to grow they're own Federally Funded VITA Tax Preparation Offices.
Special interest sought to gain fees from tax industry
One special interest group in Alabama attempted to write their own legislation. If not for NITPA the special interest would have controlled the entire industry and been able to use proceeds from the licensing fees paid by private tax businesses to help them grown their own federally funded tax operations. NITPA successfully defeated the Senate Bill in the house ending one of the most fraudulent industry attacks in modern day history.
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· The Board Members, due to current language could all be exempt from the rules, regulations and sanctions they would be writing and enforcing. (See Section 4 (1),(2),(3),(4),(5),(6) & Section 6 would allow for the entire, majority and or both to be exempt from the rules, regulations and oversight.
· Requires a minimum of seven consecutive years prior to being exempt from the application process. (Page 6 section 5 lines 3,4,5,6. This could prevent a business owner from being exempt who might have operated in the industry with an excellent record for 30 years but missed a year or so in the last seven due to a National Guard requirement, illness or disability.)
· Only three other states have attempted to pass a new Law that set precedence above the Federal Government Regulations. In each case those states have since spent millions of taxpayer dollars each year making additional modifications and enhancements.
· This bill creates a board and regulations that pertain to the Governing of an Industry which directly administers over $4 billion dollars and another $1.6 billion in federal tax credits. Yet it was written by people who have less than two months experience in the industry?
· Senate Bill 201 was written by a group of students & they're instructor, each of which, have never worked in the industry. (View video footage of Stephen F. Black, in Huntsville, Alabama on April 2, 2009 discussing how he and his students wrote SB201: 58 seconds into the Video on www.NITPA.com see menu item "Stephen Blacks students wrote this bill" or view it on Youtube.com by searching for "left in Alabama Video" again 58 seconds into the video)
· Senate Bill 201 has many other needed modifications.
NITPA (National Independent Tax Preparers Association) announces newly proposed substitute bill to be introduced in the House this week during the Alabama Legislative Session. The prior bill, SB201 did not properly address an adequate means of regulating the industry and would have left some businesses without the rights of due process. SB201 would have allowed a business owner in Alabama to be shut down based on a rumor that didn't even have to be proven to have occurred. Thanks in large part to the Enrolled Agents, Cpa's and Tax Preparer Members of NITPA this new proposal should do a better job of providing the needed regulatory facets needed to enhance the integrity of the industry in Alabama and other states which adopt it. To read NITPA's new Alabama Substitute Bill for the Tax Preparers Industry please click here.
Read NITPA response to editorial published in Alabama
After a published editorial in the Montgomery Advertiser sited the mis-represented comments from a Special Interest Group in Alabama, NITPA responded to provide the unbiased and non prejudice facts as they actually occurred.
National Independent Tax Preparers Association SB 201 Initial Proposed Issues
NITPA was informed of current proposed legislation in Alabama which was intended to regulate and sanction Tax Preparers in Alabama through a Bill called SB201. The proposed legislation went through the Senate without any Industry review and was slated to be passed into law in less than 16 days. The National Independent Tax Preparers Association requested a Public Hearing on the behalf of the publics interest to grant additional sanctions and amendments be engrossed.
The proposed legislation SB201 as it was currently written did not fully protect the Tax Payers of Alabama. If passed, SB201 would have fallen short of providing well needed standardized testing and additional oversights necessary to enhance the quality of services provided by over 4,000 Independent Tax Preparers in Alabama. NITPA on the behalf of it's growing base of Independent Tax Preparers across the country has requested the opportunity to submit additional amendments and regulations to be engrossed in this new Alabama Bill.
"SB201 is a 30 page Bill that would have affected the lives of over 4 million people in Alabama and could have been passed into law in less than 16 days with very little consideration regarding its content. We feel as both Tax Payers and Tax Preparers we have the right to be represented just as any other citizen."
Section C page 10 & 11 SB 201
SB 201 would allow an anonymous alleged alligation as the only substantiated evidence needed or required to close down a business in Alabama.
"If the board concludes that conduct alleged to be in violation of this act will result in harm to a resident of the state, the board may seek a permanent or temporary injunction with respect of the conduct from the circuit court of the county in which the alleged violation occurred. In seeking an injunction under this subsection, the board is not required to post bond, allege or prove that an adequate remedy at law does exist, or allege or prove that substantial or irreparable damage would result from the continued violation"
NITPA along with any association representing any business, industry or american citizen in the United States would firmly appose this unprecedented right to pose sanctions based on "alleged" activity without the need to prove that any wrong doing has actually occurred.
This is a bill that is set to go before a public hearing this week on the 24th at 1:00 p.m. central (February 24th, 2009)
NITPA along with any association representing any business, industry or American citizen in the United States would firmly appose this unprecedented right to closing a business based on an "alleged" activity. The board referenced in this bill need not prove that any such wrong doing has actually occurred and does not give Tax Preparers the right of appeal (administrative and or judicial appeals).
SB 201 would allow an anonymous alleged alligation as the only substantiated evidence needed or required to close down a business in Alabama.
- There are more than eleven Federal Acts and IRS Rules currently governing the Tax Preparer Industry. When other industries such as the Cosmetology Industry were Regulated in Alabama they did not have Ten (10) or more Federal Laws, Rules and Regulations already providing oversight.
Truth in Lending Act
Equal Credit Opportunity Act,
Fair Credit Reporting Act
Federal Trade Commission Act
Fair Debt Collection Practices
Electronic Funds Transfer Act
Gramm-Leach-Bliley Act
National Bank Act
USA Patriot Act
John Warner National Defense Appropriations Act of 2007
Internal Revenue Code of 2008, 2009.
The National Association Independent Tax Preparers is highly in agreement with the need for the advancement of testing and furthered education. No one is aware of the understandings as to how SB 201's proposal would work and why such drastic board modifications and board oversights were created when there are already (11) federal oversight committees currently regulating the industry. As it is written the Board in SB201 would have greater jurisdiction rights and stronger regulation abilities than what is afforded to the U.S. Senate and the United States Congress, not to mention the President himself. When other industries such as the Cosmetology Industry were Regulated in Alabama they did not have Ten (10) or more Federal Laws, Rules and Regulations already providing oversight. The current federal oversights governing this industry are as noted below;
Truth in Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, Federal Trade Commission Act, Fair Debt Collection Practices, Electronic Funds Transfer Act, Gramm-Leach-Bliley Act, National Bank Act, USA Patriot Act, John Warner National Defense Appropriations Act of 2007 and the Internal Revenue Code of 2008, 2009.
Independent Tax Preparers known as ERO, (ERO's) are currently regulated by the Federal Government through the IRS however there is no proposed or current regulation on Volunteer tax payer funded programs. We have state sanctioned licensure boards for Hair Dressers and other industries in Alabama because there had been no prior Federal Regulatory boards governing those industries and businesses. There are more than Ten current Federally Sanctioned oversight committees which govern the ERO with in the Tax Preparation Industry.
- SB 201 should require additional amendments that would, at a minimum limit fees, so that no board would have the right to charge unlimited fees to cover tax payer funded free unrelated volunteer sites where the board members are immune from public accountability.
- SB 201 is a bill of enormous proportions and it is far to early in the session for a bill of this magnitude to be passed.
- The Rules and Regulations of the board as proposed in SB 201 should be subject to the Alabama Administrative Producers Act as are others in this state.
Section C page 10 & 11 SB 201 - this is on page 10 of the bill which can be viewed online here to your left.
"If the board concludes that conduct alleged to be in violation of this act will result in harm to a resident of the state, the board may seek a permanent or temporary injunction with respect of the conduct from the circuit court of the county in which the alleged violation occurred. In seeking an injunction under this subsection, the board is not required to post bond, allege or prove that an adequate remedy at law does exist, or allege or prove that substantial or irreparable damage would result from the continued violation"
Furthermore NITPA along with any association representing any business, industry or American citizen in the United States of America would have to defend the 14th amendment of the United States Constitution regarding due process rights especially as they pertain to the rights as individuals regarding the modification of jurisdiction and due process.
The State of Alabama is in the process of passing a law that would directly and indirectly effect each and everyone of the citizens of the state and would in affect be a direct conflict with the U.S. Bill of Rights and the 14th amendment. NITPA firmly opposes any new legislation that would deny American Citizens the right to due process and allow a "Board member who can not be held personally liable" to shut down a business without due process based on a "Alleged Alligation" or "rumor" and especially if such a board member didn't even have to prove that such "alleged/rumor" actually did indeed take place.
"Every American citizen regardless of their gender, racial background and or geographic location is deserving of the right of due process in the United States of America."
If this type of law was passed it would be an unprecedented violation to the liberties granted by the Bill of Rights and the U.S. Constitution.
The Bill of Rights (1-10)
It is commonly understood that the Bill of Rights was not originally intended to apply to the states, though except where amendments refer specifically to the Federal Government or a branch thereof (as in the First Amendment, under which some states in the early years of the nation officially established a religion), there is no such delineation in the text itself. Nevertheless, a general interpretation of inapplicability to the states remained until 1868, when the Fourteenth Amendment was passed, which stated, in part, that:
"No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws."
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The National Independent
Tax Preparers Association
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