AN ACT RELATING TO TAXATION -- TAX PREPARERS ACT OF 2013 (Provides for penalties for tax preparers that purposefully mislead their clients or act as ghost preparers of tax returns.)

H7613

2026 -- H 7613
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- TAX PREPARERS ACT OF 2013

Introduced By:
Representative Alex D. Marszalkowski

Date Introduced:
February 11, 2026

Referred To:
House Corporations
(Dept. of Revenue)
It is enacted by the General Assembly as follows:
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SECTION 1. The title of Chapter 44-68 of the General Laws entitled "Tax Preparers Act
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of 2013" is hereby amended to read as follows:
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CHAPTER 44-68
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Tax Preparers Act of 2013
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CHAPTER 44-68
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TAX PREPARERS ACT
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SECTION 2. Sections 44-68-2, 44-68-3 and 44-68-4 of the General Laws in Chapter 44-
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68 entitled "Tax Preparers Act of 2013" are hereby amended to read as follows:
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44-68-2. Definitions.
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As used in this chapter, the following words shall, unless the context clearly requires
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otherwise, have the following meanings:
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(a) “Ghost preparer” means a tax return preparer who does not self-identify on returns they
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prepare or does not comply with the PTIN requirements in 26 U.S.C. § 6109 and Treasury
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Regulation 26 C.F.R. § 1.6109-2, and is compensated for or otherwise benefits from the preparation
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of returns.
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(a)
(b)
“Tax return preparer” means an individual who prepares a substantial portion of any
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return for compensation. Tax return preparers include
ghost preparers and
individuals required to
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register with the Internal Revenue Service as a tax return preparer and who have a Preparer Tax
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Identification Number (PTIN). For the purpose of this chapter the following individuals shall not

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be considered tax return preparers:
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(1) Volunteer tax return preparers; or
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(2) Employees of a tax return preparer and employees of a commercial tax return
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preparation business who provide only clerical, administration or other similar services.
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(b)
(c)
“Preparer Tax Identification Number”
or “PTIN”
means the number issued by the
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Internal Revenue Service (IRS) to paid preparers
to use

that must be included
on all the returns
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they prepare.
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(c)
(d)
“Return” shall mean any tax report, return, claim for refund or attachment to any
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report, return and/or claim for
return

refund
filed with the tax administrator pursuant to the tax laws
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of this state.
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44-68-3. Duties and responsibilities.
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(a) A tax return preparer who prepares any return that is submitted to the tax administrator
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must comply with all state laws and all applicable regulations promulgated by the tax administrator.
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(b) A tax return preparer must sign and include his/her preparer tax identification number
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on all returns prepared and filed with the division of taxation.
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(c) A tax return preparer shall not be a ghost preparer or engage in any activity that
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facilitates the use of a ghost preparer.
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44-68-4. Civil penalties.
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(a) Failure to be diligent in determining eligibility for or amount of earned-income credit.
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Upon a determination by the tax administrator that a tax return preparer prepared a return(s) and
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failed to comply with due diligence requirements imposed by regulations issued by the tax
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administrator with respect to determining eligibility for, or the amount of, the credit allowable by
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§ 44-30-2.6(c)(2)(N), the tax return preparer shall pay a penalty of five hundred dollars ($500) for
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each such return and/or claim.
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(b) Failure to be diligent in determining eligibility for property tax relief credit. Upon a
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determination by the tax administrator that a tax return preparer prepared a return(s) and failed to
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comply with due diligence requirements imposed by regulations issued by the tax administrator
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with respect to determining eligibility for, or the amount of, the property tax relief credit allowable
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by § 44-33-1 et seq., the tax return preparer shall pay a penalty of five hundred dollars ($500) for
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each such return.
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(c) Tax return preparer civil penalties.
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(1)
Upon a determination by the tax administrator that a tax return preparer willfully
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prepared, assisted in preparing, or caused the preparation of a return(s) filed with the division of
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taxation with intent to wrongfully obtain a property tax relief credit or with the intent to evade or

LC004981 - Page 2 of 4
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reduce a tax obligation, the tax return preparer shall be liable for a penalty of one thousand dollars
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($1,000), or five hundred ($500) for each return so filed during any calendar year, whichever is
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greater.
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(2) Upon a determination by the tax administrator that a tax return preparer willfully misled
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or committed fraud against a taxpayer, or purposefully circumvented tax laws administered by the
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tax administrator, or violated any provision of § 44-68-3, the tax return preparer shall be liable for
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a penalty of not more than one thousand dollars ($1,000) for each return so filed during any calendar
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year.
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(d) The tax administrator may suspend or revoke the privilege of a tax return preparer to
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prepare and/or file returns with the division of taxation upon a determination that the tax return
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preparer has failed to comply with or violated any provision of this section, any regulations issued
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by the tax administrator, or with any provision of any other laws relative to the preparation of tax
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returns. Any tax return preparer receiving a notice of intent to suspend or revoke the privilege to
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file tax returns with the division of taxation may request a hearing on the notice of intent to suspend
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or revoke; provided that said request for a hearing must be made within thirty (30) days of such
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notice to suspend or revoke. If, after hearing, the tax return preparer is aggrieved by a decision of
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the tax administrator (or his or her designated hearing officer), the tax return preparer may, within
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thirty (30) days after notice of the decision is sent to the tax return preparer by certified or registered
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mail, directed to their last known address, petition the sixth division of the district court pursuant
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to chapter 8 of title 8, setting forth the reasons why the decision is alleged to be erroneous and
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praying for relief therefrom.
The tax administrator may, on a periodic basis, prepare and publish a
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list of tax return preparers whose privileges as a tax return preparer have been suspended or
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revoked.
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(e) Upon a determination by the tax administrator that a tax return preparer has committed
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a violation of this section subsequent to a suspension or revocation of that tax return preparer’s
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privilege to prepare and/or file returns with the division of taxation, the tax return preparer shall be
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liable for a penalty of not more than five thousand dollars ($5,000) if suspended, or ten thousand
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dollars ($10,000) if revoked, per violation.
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SECTION 3. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- TAX PREPARERS ACT OF 2013
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This act would provide for penalties for tax preparers that purposefully mislead their clients
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or act as ghost preparers of tax returns and would require the tax administrator to publish a list of
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tax preparers who have had their privileges to prepare returns revoked or suspended.
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This act would take effect upon passage.
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