2026 -- H 7613

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LC004981

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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:

     SECTION 1. The title of Chapter 44-68 of the General Laws entitled "Tax Preparers Act

of 2013" is hereby amended to read as follows:

CHAPTER 44-68

Tax Preparers Act of 2013

CHAPTER 44-68

TAX PREPARERS ACT

     SECTION 2. Sections 44-68-2, 44-68-3 and 44-68-4 of the General Laws in Chapter 44-

68 entitled "Tax Preparers Act of 2013" are hereby amended to read as follows:

     44-68-2. Definitions.

     As used in this chapter, the following words shall, unless the context clearly requires

otherwise, have the following meanings:

     (a) “Ghost preparer” means a tax return preparer who does not self-identify on returns they

prepare or does not comply with the PTIN requirements in 26 U.S.C. § 6109 and Treasury

Regulation 26 C.F.R. § 1.6109-2, and is compensated for or otherwise benefits from the preparation

of returns.

     (a)(b) “Tax return preparer” means an individual who prepares a substantial portion of any

return for compensation. Tax return preparers include ghost preparers and individuals required to

register with the Internal Revenue Service as a tax return preparer and who have a Preparer Tax

Identification Number (PTIN). For the purpose of this chapter the following individuals shall not

be considered tax return preparers:

     (1) Volunteer tax return preparers; or

     (2) Employees of a tax return preparer and employees of a commercial tax return

preparation business who provide only clerical, administration or other similar services.

     (b)(c) “Preparer Tax Identification Number” or “PTIN” means the number issued by the

Internal Revenue Service (IRS) to paid preparers to use that must be included on all the returns

they prepare.

     (c)(d) “Return” shall mean any tax report, return, claim for refund or attachment to any

report, return and/or claim for return refund filed with the tax administrator pursuant to the tax laws

of this state.

     44-68-3. Duties and responsibilities.

     (a) A tax return preparer who prepares any return that is submitted to the tax administrator

must comply with all state laws and all applicable regulations promulgated by the tax administrator.

     (b) A tax return preparer must sign and include his/her preparer tax identification number

on all returns prepared and filed with the division of taxation.

     (c) A tax return preparer shall not be a ghost preparer or engage in any activity that

facilitates the use of a ghost preparer.

     44-68-4. Civil penalties.

     (a) Failure to be diligent in determining eligibility for or amount of earned-income credit.

Upon a determination by the tax administrator that a tax return preparer prepared a return(s) and

failed to comply with due diligence requirements imposed by regulations issued by the tax

administrator with respect to determining eligibility for, or the amount of, the credit allowable by

§ 44-30-2.6(c)(2)(N), the tax return preparer shall pay a penalty of five hundred dollars ($500) for

each such return and/or claim.

     (b) Failure to be diligent in determining eligibility for property tax relief credit. Upon a

determination by the tax administrator that a tax return preparer prepared a return(s) and failed to

comply with due diligence requirements imposed by regulations issued by the tax administrator

with respect to determining eligibility for, or the amount of, the property tax relief credit allowable

by § 44-33-1 et seq., the tax return preparer shall pay a penalty of five hundred dollars ($500) for

each such return.

     (c) Tax return preparer civil penalties.

     (1) Upon a determination by the tax administrator that a tax return preparer willfully

prepared, assisted in preparing, or caused the preparation of a return(s) filed with the division of

taxation with intent to wrongfully obtain a property tax relief credit or with the intent to evade or

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reduce a tax obligation, the tax return preparer shall be liable for a penalty of one thousand dollars

($1,000), or five hundred ($500) for each return so filed during any calendar year, whichever is

greater.

     (2) Upon a determination by the tax administrator that a tax return preparer willfully misled

or committed fraud against a taxpayer, or purposefully circumvented tax laws administered by the

tax administrator, or violated any provision of § 44-68-3, the tax return preparer shall be liable for

a penalty of not more than one thousand dollars ($1,000) for each return so filed during any calendar

year.

     (d) The tax administrator may suspend or revoke the privilege of a tax return preparer to

prepare and/or file returns with the division of taxation upon a determination that the tax return

preparer has failed to comply with or violated any provision of this section, any regulations issued

by the tax administrator, or with any provision of any other laws relative to the preparation of tax

returns. Any tax return preparer receiving a notice of intent to suspend or revoke the privilege to

file tax returns with the division of taxation may request a hearing on the notice of intent to suspend

or revoke; provided that said request for a hearing must be made within thirty (30) days of such

notice to suspend or revoke. If, after hearing, the tax return preparer is aggrieved by a decision of

the tax administrator (or his or her designated hearing officer), the tax return preparer may, within

thirty (30) days after notice of the decision is sent to the tax return preparer by certified or registered

mail, directed to their last known address, petition the sixth division of the district court pursuant

to chapter 8 of title 8, setting forth the reasons why the decision is alleged to be erroneous and

praying for relief therefrom. The tax administrator may, on a periodic basis, prepare and publish a

list of tax return preparers whose privileges as a tax return preparer have been suspended or

revoked.

     (e) Upon a determination by the tax administrator that a tax return preparer has committed

a violation of this section subsequent to a suspension or revocation of that tax return preparer’s

privilege to prepare and/or file returns with the division of taxation, the tax return preparer shall be

liable for a penalty of not more than five thousand dollars ($5,000) if suspended, or ten thousand

dollars ($10,000) if revoked, per violation.

     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

***

     This act would provide for penalties for tax preparers that purposefully mislead their clients

or act as ghost preparers of tax returns and would require the tax administrator to publish a list of

tax preparers who have had their privileges to prepare returns revoked or suspended.

     This act would take effect upon passage.

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