Governor Signs Felony Tax Preparer Legislation

March 23, 2005 — Effective July 1, 2005, it will be a Class 6 felony for income tax preparers to willfully and knowingly participate in the preparation of a fraudulent tax return, according to legislation (SB 1225) signed by Gov. Mark Warner on March 20.

This bill encompasses tax preparers who knowingly and willfully aid in, assist in, counsel or advise the preparation or presentation of a fraudulent tax return, affidavit, claim or other document that the income tax return preparer knows is fraudulent or false. The legislation also authorizes the Virginia tax commissioner to initiate injunctive action against a fraudulent income tax return preparer.

VSCPA member and Senate Majority Leader Walter A. Stosch sponsored the legislation.

If you have questions or concerns regarding this or other legislation, contact VSCPA Government Affairs Director Erin Collins at (800) 733-8272. The VSCPA will keep you apprised of any pertinent developments from the Virginia General Assembly and the governor's desk. Watch your e-mail in box for Issue Alerts or the VSCPA Web site for breaking news.