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

Rhode Island Tax Preparers Act of 2013 – Plain English 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. Specifically, it targets two types of problematic behavior: preparers who deliberately mislead their clients (for example, by giving false information or hiding important details), and so-called "ghost preparers" — people who prepare someone's tax return but intentionally leave their own name off the return to avoid accountability.

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 law is meant to offer greater protection, since they would have legal recourse if a preparer deceives them or secretly works on their return without being identified. For tax preparers, it creates clear consequences for unethical practices that could otherwise go unpunished.

Ghost preparation is a particular concern because when a preparer's name doesn't appear on a return, there's no easy way to hold them responsible if something goes wrong — such as errors, fraud, or inflated refund claims. By requiring transparency and punishing those who hide their involvement, the bill aims to make the tax preparation process more trustworthy and easier for tax authorities to oversee.

As of the most recent update, the bill has been introduced in the Rhode Island Senate and referred to the Senate Finance Committee for further review. No final vote has been taken on the measure.