RI Tax Preparers to Face New Compliance

The Rhode Island Division of Taxation has proposed a regulation involving penalties that may be imposed on paid tax preparers who fail to comply with due diligence requirements.

Regulation PIT 14-23 would help to implement a state law enacted in June 2013 that established specific penalties -- civil and criminal -- for paid preparers who prepare Rhode Island returns with the intent to wrongfully evade or reduce a tax obligation. (See Rhode Island General Laws Chapter 44-68.)

A public hearing on the regulation is scheduled for 9:30 a.m. on Wednesday, September 17, 2014, at the Rhode Island Division of Taxation, One Capitol Hill, Providence, R.I.

Also at that hearing, the Division of Taxation will take public comment regarding two regulations that are scheduled for repeal because the underlying statutes have been repealed: Regulation CT 88-09, “Business Corporation Tax/Net Worth Tax,” and a regulation which was related to the study of combined reporting, Regulation CT 11-15, “Combined Reporting (pro forma).”