Letter to the Editor: New Iowa law will protect taxpayers from fraud

(The following Letter to the Editor has been submitted by State Representative Michael Bergan):

Over the past few weeks Iowans received and deposited their tax refunds without much thought.  Many Iowans paid for help in preparing their return, in the belief that a qualified professional was working in their best interests.  Unfortunately, though, not all paid tax preparers have had their clients' best interests at heart—or even understood basic tax issues.

That is why I'm proud to have led the effort to protect Iowans through a new law that holds tax preparers in Iowa to higher standards of integrity, ethics and education.

Whether due to incompetence or fraud, mistakes on an official tax return can result in taxpayers missing out on a deserved refund.  Or worse, they may end up owing the government thousands of dollars. What's more, the taxpayer is liable for these mistakes, not the preparer.

Iowans deserve protection from bad or incompetent paid preparers.  I applaud Governor Kim Reynolds for signing HF 590 into law.  This measure takes commonsense steps to protect Iowa taxpayers from bad actors. It allows the state to track who is filing tax returns by requiring preparers to include their federal ID number on state returns. Once the Iowa Department of Revenue knows who is preparing returns, they can better identify unscrupulous preparers and seek a court injunction to shut down their activities.

The law also requires preparers to complete 15 hours of continuing education every year, including professional ethics, which is available for free through the Internal Revenue Service.  This level of education is consistent with voluntary requirements to represent a client before the Internal Revenue Service.

Iowans deserve an accurate tax return completed by a trustworthy preparer who appropriately handles their financial and other sensitive information. This new law will help protect Iowa taxpayers during tax season and beyond."