SB402 - Alabama Taxpayer Protection and Assistance Act

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

• Establishes minimum registration requirements including no felony convictions, age 18 or older, high school diploma or equivalent, U.S. citizenship or legal residency, and passing a Department-administered examination.

• Mandates that tax preparers disclose their registration status, qualifications, education, and services to consumers in writing before providing services and prohibits use of terms "certified" or "registered" in advertising.

• Creates the Individual Tax Preparers Fund financed by registration and renewal fees, with surplus revenue supporting outreach to low-income taxpayers about free tax assistance services.

• Establishes civil penalties for violations including fraudulent registration, negligence or incompetence, and violations of disclosure requirements, with a $100 penalty for specific violations; allows Department to deny, reprimand, suspend, or revoke registrations.

• Requires annual reporting beginning July 2018 on the total number of completed federal and state tax returns prepared.

• Becomes effective January 1, 2017.