HB258 Summary: Alabama Taxpayer Protection and Assistance Act

• Requires individual tax preparers (excluding CPAs, enrolled agents, and attorneys) to register with the Alabama Department of Revenue before preparing individual income tax returns in the state.

• Establishes minimum qualifications for registration including no felony conviction, age 18+, high school diploma or GED, U.S. citizenship or legal presence, and passage of a Department exam.

• Mandates that registered preparers disclose their credentials, qualifications, and limitations in writing to consumers and maintain records for seven years; prohibits use of terms "certified" or "registered" in advertising.

• Creates the Individual Tax Preparers Fund financed by registration fees to support program administration and fund IRS Volunteer Income Tax Assistance (VITA) programs for low-income taxpayers.

• Authorizes the Department to deny, suspend, or revoke registration for fraudulent conduct, criminal convictions, negligence, incompetence, or misconduct; establishes $100 penalties for violations and allows civil penalties under existing state law.