The National Independent Tax Preparers Association (NITPA) defeated a Special Interest Group in Alabama from passing its Senate Bill 201.  The Bill's intentions and language allowed for it to directly benefit the Special Group proposing the Bill and allowed the board members to be completely exempt from all rules, fees and sanctions they'd be proposing on Tax Preparers in Alabama. Tax Preparers in Alabama who supported NITPA were not completely opposed to industry enhancements but felt that the licensing board members shouldn't be exempt from the rules they would be imposing on the industry.  Senate Bill 201 was poorly drafted without industry insight.  NITPA members are uniting throughout Alabama and the U.S. to help create a standardized proposal for the industry.

Members from the National Independent Tax Preparers Association worked together to help in proposing new amendments for Alabama Senate Bill 201. A Senate Bill recently introduced.  NITPA and it's growing base of CPA's, Enrolled Agents, Software Distributors and Independently owned Tax Offices worked together to help enhance current legislation being proposed in Alabama.  In addition to strengthening the penalties and regulations originally requested.  NITPA members also proposed a new Scholarship Fund to enhance educational opportunities for areas where the largest amounts of EITC are funded.  EITC known as Earned Income Tax Credits are part of the nations largest anti-poverty program.  If passed the newly formed Senate Bill would help expand the sanctions, regulated federal oversights and needed qualifications for entering & operating in the Tax Preparer Industry.  The legislation has drawn a lot of attention from national news media and other outlets who at first figured Tax Preparers would be totally against any such legislation.  The industry, already subject to ten federal laws, has been under attack in Alabama since a non profit group began singling it out with interest and political motivation that would have allowed them to tax & penalize the same independent business owners they were in the process of running out of business.  The attack on the industry came from a perpetuated undercover investigation which only looked at .003% of the preparers in the state.  The group running the investigation claimed that all 13 of the offices they encountered were unable to complete the Tax Returns correctly.  After reviewing the groups own findings completed during the investigation our own team of CPA's and Tax Preparers completed some of the same returns and actually found that in most cases some if not most of the 13 offices investigated, actually complete the returns correctly.  "The non profit group behind the investigation set out to commit fraud as if they were a consumer looking to abuse the system.  While completing the required paperwork needed to process and key punch the return, the students posing as tax payers, then began telling the Tax Preparers different answers than what they'd originally placed on the paperwork.  The likelyhood of 13 out of 13 offices getting the wrong or incorrect returns is highly unlikely unless of course your trying to get the wrong answers than all you have to do is give the wrong input. 

Many of these offices in Alabama were wrongfully accused and some if not most have sufferred great loss from incorrect statements being made by the news media.  It is unclear as to which direction some or all of those businesses will take when it comes time for them to clear their name and reputation.  For additional information on the Alabama Tax Preparer issue and investigation please click here.

The National Independent Tax Preparers Association seeks to support a newly proposed substitute bill in Alabama.  NITPA and it's industry leading executives from across the country worked hand in hand to understand each facet of the previously proposed "SB201 Tax Preparers Assistance Act".  What we began to see is that it wasn't actually doing anything to really regulate the industry and would have continued to allow unscrupulous preparers to prepare tax returns.  The only thing the was about to do, that any business owner or American citizen would clearly identify with,  is " it was going to eliminated the right of due process to the people in Alabama." 

If passed in it's original format it would have set a terrible unprecedented course of action for other industry's in the U.S. to shut down a business based on an alleged allegation, without ever having to prove the allegation actually even occurred.  It would have prevented those business owners from the right of appeal or the right of due process.  All people are granted through the "Bill of Rights and the U.S. Constitution" the right of due process. "The people of Alabama deserve their rights to be defended and all people in the U.S. should defend those rights as granted to us by the Constitution and the 14th Amendment.  This is what our country has fought to defend for over 200 years" - J.C. Snowden II, NITPA President. 

NITPA and it's growing base of Enrolled Agents, CPA's, Software Distributors and Independent Business owners have long been pushing for the IRS to help standardize the industry and enforce the current rules and regulations provided by the Ten different federal oversight committees.  NITPA and it's members are strongly for education and licensing in each and every state.  We feel there needs to be a standardized certified testing process and one that can be fairly implemented for all people and not just a select minority.

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 public interest to request 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 Legislative 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." - J.C. Snowden II President of NITPA (National Independent Tax Preparers Assciation) read more as noted by the Montgomery Advertiser.

NITPA and it's members have long requested the IRS provide standardized testing to the ERO's currently sanctioned by the Internal Revenue Service and the other ten Federally Mandated Regulatory Committees that currently govern the Tax Preparer Industry.  "We have consistently been a proponent for national IRS monitored testing for our members.  Testing that is standardized throughout the country and provided or managed by the Internal Revenue Service has always been in the best interest of our members and the citizens of both Alabama and the U.S."

J.C. Snowden II
NITPA President
www.NITPA.com

According to the National Independent Tax Preparers Associations Tax Professionals in Alabama and other states are highly regulated by over ten Federal Regulatory Oversight Committees which are listed below.

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.

As noted form early press releases the NITPA is in great concern for the newly proposed Alabama Legislation SB 201.  This bill drastically modifies the lives of nearly everyone of the 4 million Alabama Citizens in the State.  A bill of this size and with such drastic effects would normally be reviewed with additional consideration and more importantly better a better understanding by those through out each of the many districts represented by both the House and the Senate.  The industry is already regulated by (11) federal oversight committees which should give us some comfort that the Alabama Legislators could at least take a little of their time allowing it to be reviewed, understood and explained to the public before it is just past and made into law. 

If your a business owner in your district you should voice an opinion regarding SB201 and at a minimum request to be represented by your districts representative regarding due process and the fact that no legal business should be able to be closed down based on a rumor, especially if such rumor didn't even have to have occurred.

The National Independent Tax Preparers Association which after last week now represents the voices and interest of over 500 industry related parties in Alabama alone with additional voices and representation from North Carolina throughout side the continental U.S. Due to being in the middle of the busiest part of their season these local independent business owners are completely unaware of the Bill's existence especially since it's most recent modifications have only been made public late last week providing now less than 4 days for anyone to become aware of it's changes.

More importantly no one is aware of the understandings as to how it would work and why such drastic board modifications and board oversights were created.  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.  There are more than eleven Federal Laws 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. 

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.
 
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.

SB 201 would allow an anonymous alleged allegation as the only substantiated evidence needed or required to close down a business in Alabama. (section d page 10, SB 201) The National Association Independent Tax Preparers is highly in agreement with the need for the advancement of testing and furthered education within the industry.

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Thank you,
J.C. Snowden II
President
NITPA
National Independent
Tax Preparers Association

866-910-5899