State law requires tax professionals who prepare income tax returns to follow standards of ethics and conduct. Those with credentials, such as certified public accountants (CPAs) or attorneys, must also follow a code of ethics for their professions.
If a tax preparer does not follow the required standards, they may be subject to penalties or criminal prosecution.
What can the department do?
- Willfully attempts to understate the correct tax or recklessly disregards tax law while preparing a return
- Assess the tax professional a penalty of $500 for each return prepared in this manner
- Is convicted of a crime related to tax return preparation
- Is assessed civil penalties of more than $1,000 for certain actions related to tax return preparation
- Place their name on our Tax Preparers Subject to Penalties list (see below)
Tax Preparers Subject to Penalties
| Rona E Griffin
|| HAH Broker Inc.
|| PO Box 554, Champlin, MN 55316
|| 289A.63 subdivision 2|
Douglas J. Law
Douglas J. Law, CPA
635 5th St., Newport, MN 55055
289A.60 subdivision 13(a)
The state laws that apply are:
Who Can Represent a Taxpayer
In addition to these penalties, some tax professionals may be ineligible to represent clients before the Minnesota Department of Revenue. For more information see:
How to Report an Unprofessional Preparer to the Department
Choosing a Tax Preparer
If you’re looking to hire a tax preparer, it’s important to find one who has the knowledge and experience to prepare your returns correctly. For more information see: