Two tax preparers in Suffolk County fined $63,000, state officials say

Two tax preparers in Suffolk County have been fined a total of $63,200 for failure to comply with state regulations, officials said.

The professional tax preparers didn’t register with the state Department of Taxation and Finance before working on income tax returns last year, failed to sign the returns that they prepared and didn't file them electronically, department spokesman James Gazzale said on Tuesday.

"They’re what we call ghost preparers," he said, adding the department isn’t yet naming the Suffolk tax preparers and the 17 others statewide who were found to be violating state rules. Together, they were fined $3.8 million.

The state requires professional tax preparers to register annually and taxpayers are advised to ask for their preparer’s registration certificate before giving personal information, Gazzale said. A database of qualified preparers may be found at nwsdy.li/taxpreparers.

There are more than 15,000 registered tax preparers in New York.

State tax commissioner Michael Schmidt said, "While most tax practitioners are responsible professionals, we’re committed to protecting taxpayers from those who are incompetent or unethical."

The tax department can fine tax preparers $250 for failure to register and $50 per filed return for not paying the registration fee, not signing the return, not providing a copy to the taxpayer or filing the return via postal mail. They face a $5,000 fine for submitting a fraudulent return.

Each year, the department requires tax preparers to complete continuing education workshops.

Complaints from taxpayers may be submitted to nwsdy.li/complaints or by calling 518-530-4357.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.