Regulation of NY Enrolled Agents

It is Not Unconstitutional to Treat Enrolled Agents and CPAs Differently
New York tax law does not violate the United States Constitution by requiring enrolled agents to register with the New York State Department of Taxation and Finance and to pay an annual fee. “Here, plaintiff fails to plead any facts to support its assertion that there is not a reasonable connection between [the state] registration requirement and the promotion of public welfare. On the contrary,… there is a greater need today for regulation of tax return preparation because of the unethical and criminal behavior in the tax return preparer community in recent years…. Nor do the allegations in plaintiff's complaint support a claim that to exempt tax attorneys, public accountants, or certified public accountants, or their employees who prepare tax returns, from the registration requirement…but not to exempt enrolled agents, is arbitrary and capricious….[E]nrolled agents, while subject to standards of practice under the Practice Regulations, are not subject to the same licensing and professional standards as are attorneys and certified public accountants, in this, as well as in other, states. New York State Ass'n of Enrolled Agents, Inc. v. New York State Dept. of Taxation and Finance, ___ N.Y.S.2d ___ 2010 WL 2891245, 6 (N.Y.Sup.) (N.Y.Sup.,2010)