If you provide tax services in New York state, listen up.

A new law passed as part of Gov. David Paterson's budget requires all tax preparers who provide tax services in New York to register with the state. The law provides an exemption for New York CPAs, but out-of-state CPAs would still be required to register.

According to the New York State Department of Taxation, tax preparers must pay a $100 registration fee if:

• they “were paid to prepare 10 or more New York state tax returns in 2009 and will prepare at least one personal income tax return in 2010,” or
• they “will be paid to prepare 10 or more tax returns for 2010.”

The New York State Society of CPAs is supporting “clean-up” legislation that would exempt *all* CPAs and their staffs from the requirement. The legislation has been introduced in the New York Assembly as A. 8556 and in the state Senate as S. 5710.

For the time being, though, out-of-state CPAs are still bound by the requirement, and the state Department of Taxation is offering details on how to register and pay the $100 fee.

Stay tuned. We'll update you on progress to exempt out-of-state CPAs as developments warrant.