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SB 2810

AN ACT RELATING TO TAXATION -- TAX PREPARERS ACT OF 2013

2026 Regular Session Introduced by Alana DiMario and 3 co-sponsors

Rhode Island law now fines, suspends, or revokes tax preparers for misconduct and ghost-prepping, requires signatures and PTINs, and publicizes disciplined preparers.

06/19/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · SB 2810

Overview

SB 2810 (Rhode Island, 2026) updates the Tax Preparers Act of 2013. The bill strengthens penalties for tax preparers who mislead clients or act as “ghost preparers,” expands enforcement measures, and requires public listing of suspended or revoked preparers. It takes effect upon passage.

Purpose and intent

  • Improve integrity and accountability in state tax preparation by:
    • Penalizing willful misconduct, fraud, and ghost-preparation practices.
    • Ensuring preparers identify themselves (via PTIN) and sign returns.
    • Providing a mechanism to suspend or revoke the privilege to prepare state tax returns.
    • Enhancing transparency by publishing a list of disciplined preparers.

Key provisions and changes

  • Definitions (44-68-2)

    • Ghost preparer: A preparer who does not self-identify on returns and/or fails to comply with PTIN requirements and benefits from preparing returns.
    • Tax return preparer: Any person who prepares a substantial portion of a return for compensation; includes those registered with the IRS with a PTIN. Excludes volunteers and certain clerical employees.
    • PTIN: Preparer Tax Identification Number issued by the IRS.
    • Return: Any state tax report, return, refund claim, or attachment filed with the Rhode Island tax administrator.

  • Duties and responsibilities (44-68-3)

    • Preparers must comply with all applicable state laws and tax administrator regulations.
    • Must sign returns and include their PTIN.
    • Must not be a ghost preparer or facilitate ghost preparation.

  • Civil penalties (44-68-4)

    • Earned-income credit and property tax relief credit due diligence (a, b):
    • Penalty of $500 for each return/claim where due diligence for eligibility or amount was not properly performed.
    • Willful misconduct penalties (c):
    • General penalty: $1,000 per calendar year, or $500 per return, whichever is greater, for willful preparation or assistance aimed at fraudulently obtaining property tax relief or evading/ reducing tax.
    • Fraud/intentional circumvention penalties: Up to $1,000 per return for willful misrepresentation or fraud against a taxpayer or violation of § 44-68-3.
    • Suspension or revocation (d):
    • Tax administrator may suspend or revoke a preparer’s privilege to file returns.
    • Hearings available within 30 days of a suspension/revocation notice.
    • Post-decision judicial review available in the Sixth Division of the Rhode Island District Court within 30 days.
    • Regular publication of a list of suspended/revoked preparers.
    • Reinstatement and additional penalties (e):
    • If a preparer commits violations after suspension, penalties may be up to $5,000 per violation (suspended) or $10,000 per violation (revoked).

  • Effective date (Section 3)

    • The act takes effect upon passage.

Who is affected

  • Tax return preparers and their professional practices in Rhode Island.
  • Individuals and households seeking state tax credits (earned income credit and property tax relief credit), who rely on preparers for eligibility determination.
  • Rhode Island Department of Taxation for enforcement, compliance monitoring, and public disclosure of disciplinary actions.

Procedural and timeline aspects

  • Introduced March 4, 2026, referred to Senate Finance.
  • Scheduled for hearing/consideration in May 2026.
  • Immediate effect upon passage (no phase-in period specified).

Potential impact

  • Increased accountability for tax preparers through higher fines and potential suspension/revocation.
  • Greater deterrence against ghost-prepping and misrepresentation to obtain credits.
  • Enhanced consumer protection via public disclosure of disciplined preparers.
  • Administrative emphasis on due diligence for credits and targeted tax relief programs.

Compiled from official sources — confirm details with the bill’s official record.

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