Relating to tax return preparers, and providing penalties. Effective 7-1-19

A certified or licensed accountant, a licensed attorney, certain fiduciaries, employees who prepare tax returns of their employers, and other employees are excluded from the definition. However, the bill shall not be construed to limit the authority of the department of revenue to require the professions excluded from the definition of tax preparer in the bill to include the preparer’s PTIN as required by the department of revenue. If a tax return preparer fails to include the preparer’s PTIN on any tax return or claim for refund, the preparer shall be subject to a civil penalty in the amount of $50 for each violation, unless the tax return preparer shows that the failure was reasonable under the circumstances and not willful or reckless conduct. The bill specifies that a tax return preparer may be temporarily or permanently enjoined from preparing Iowa tax returns or refund claims if the court finds that injunctive relief is necessary to prevent the recurrence of certain conduct. Beginning January 1, 2020, and every year thereafter, a tax return preparer shall complete a minimum of hours of continuing education courses on subject matters prescribed by the department of revenue, including two hours of continuing education on professional ethics.