Provides for penalties for tax preparers that purposefully mislead their clients or act as ghost preparers of tax returns.

Rhode Island Tax Preparers Act Summary

This bill sets up penalties for tax preparers in Rhode Island who engage in dishonest or deceptive practices when helping clients file their taxes. It targets two specific problems: tax preparers who deliberately mislead their clients with false or inaccurate information, and so-called "ghost preparers" — people who prepare tax returns for others but secretly leave their name off the return, making it look like the taxpayer filed on their own. Ghost preparers often do this to avoid accountability for errors, fraud, or improper claims on the return.

The bill affects anyone who works as a paid tax preparer in Rhode Island, as well as the everyday people who hire them. For clients, the bill is meant to provide greater protection by creating legal consequences for preparers who take advantage of them or hide their involvement in preparing a return. Honest tax preparers who follow the rules and properly sign the returns they prepare would not be affected by these penalties.

The legislation was originally introduced in 2013 but has continued to move through the legislative process in recent years, with hearings and committee reviews scheduled into 2026. Most recently, a committee recommended holding the bill for further study, meaning lawmakers want more time to examine its details before moving it forward. The bill has not yet been passed into law.