MI SB0269

Requires paid tax preparers to sign all individual income tax returns or refund claims filed in Michigan and provide their preparer tax identification number, effective January 1, 2021.

Imposes a $50 civil penalty per failure to sign or provide identification number, with an annual cap of $25,000 per preparer; penalty amounts may be used by the Department of Treasury to regulate tax preparers.

Prohibits paid tax preparers from knowingly preparing returns with unreasonable positions, willful or reckless understatements of liability, and from engaging in fraud, misrepresentation, or other deceptive conduct.

Authorizes the Department of Treasury to seek court injunctions against preparers violating these provisions and to permanently bar preparers from practicing in Michigan if they repeatedly violate the rules, with prior federal or out-of-state injunctions establishing a presumption for an injunction.

Requires the Department of Treasury to post information on its website and include statements in tax instruction booklets informing taxpayers about preparer signature requirements and providing contact information for the department's fraud unit.