CSEA Opposes AB 1140
Although EAs are exempt from the requirements of AB 1140, the Legislative Affairs Committee is preparing a letter of opposition to Assemblymember Mark Stone's office and the Legislature. The Legislative Affairs Committee feels that the bill adversely affects California Registered Tax Preparers (CRTPs) and the EAs who employ them. Reasons for our opposition to AB 1140 include the following:
- Requiring a tax preparer to disclose their “usual and customary” fees prior to a full review of the taxpayer’s situation could mislead consumers about actual prices.
- Requiring fee disclosures in five languages fails to protect taxpayers because it creates additional opportunities for miscommunication between the taxpayer and the tax preparer.
- Requiring a tax preparer to provide information concerning free filing services may change how a taxpayer views their situation.
- The legislation does not exempt Enrolled Agents who employ CRTPs from the burden of satisfying the disclosure requirements.
This bill will cause confusion in the tax professional community and unfairly punishes CRTPs, who already have to comply with a number of regulatory measures. AB 1140 was passed out of the Assembly on January 27, and likely won’t be heard in Committee until summer. We will inform our Members of any updates on AB 1140 going forward. Read the entire opposition letter here .
Please email any questions to Brian Pedersen, CSEA’s Advocacy & Governance Coordinator, at firstname.lastname@example.org.