Tax Preparers Who Ignore State’s Rules Face Penalties

New York State Tax Department has issued more than $453,000 in fines to tax professionals who failed to comply with regulations

The New York State Department of Taxation and Finance announced that it has issued more than $453,000 in fines to noncompliant tax professionals.

To avoid thousands of dollars in possible penalties and revocation of their authorization to file tax returns in New York State, preparers must:


  • register with New York State and pay an annual fee;
  • file electronically;
  • sign all returns they prepare;
  • provide a copy of the return to the taxpayer;
  • ensure all information submitted is accurate and truthful; and
  • meet continuing education requirements each year.

“Tax professionals, with access to the sensitive personal information of clients, must be held to a high standard,” said Acting Commissioner Nonie Manion. “While most are honest professionals intent on delivering exceptional services, the relatively few unreliable or unethical practitioners can tarnish the industry and cause serious problems for their clients.”

Requirement  Penalty
 Submitting a fraudulent return  $5,000
 Failure to sign completed return  $250 per return filed
 Failure to register  $250
 Failure to include registration number  $100 per return filed (up to $2,500)
 Failure to file electronically  $50 per return filed
 Failure to submit annual registration fee  $50 per return filed
 Failure to provide copy of return to taxpayer  $50 per return filed (up to $25,000)

Example: If a tax preparer fails to register or pay their annual fee; submits 40 income tax returns without their signature or registration number; fails to electronically file the returns; and fails to provide clients with a copy of the return, the Tax Department could assess nearly $19,000 in fines.

If you suspect that a tax preparer is engaging in illegal or improper conduct, please file a complaint with the NYS Tax Department:

  • on our website, or
  • by phone at 518-530-HELP.
  • The Tax Department will review your complaint promptly and, if appropriate, take corrective action that may include sanctions.

More information