Iowa Code 421.62 – Inclusion of preparer tax identification number
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1. For purposes of this section, unless the context otherwise requires:
a. “Department” means the Iowa department of revenue.
b. “Income tax return or claim for refund” means any tax return or claim for refund under chapter 422, excluding withholding returns under section 422.16.
c. “PTIN” means a preparer tax identification number, as defined in Internal Revenue Service Notice 2011-6.
d. (1) “Tax return preparer” means any individual who, for a fee or other consideration, prepares ten or more income tax returns or claims for refund during a calendar year, or who assumes final responsibility for completed work on such income tax returns or claims for refund on which preliminary work has been done by another individual.
(2) “Tax return preparer” does not include any of the following:
(a) An individual licensed as a certified public accountant or a licensed public accountant under chapter 542 or a similar law of another state.
(b) An individual admitted to practice law in this state or another state.
(c) An enrolled agent enrolled to practice before the federal internal revenue service pursuant to 31 C.F.R. §10.4.
(d) A fiduciary of an estate, trust, or individual, while functioning within the fiduciary’s legal duty and authority with respect to that individual, or that estate or trust or its testator, trustor, grantor, or beneficiaries.
(e) An individual who prepares the tax returns of the individual’s employer, while functioning within the individual’s scope of employment with the employer.
(f) An individual employed by a local, state, or federal government agency, while functioning within the individual’s scope of employment with the government agency.
(g) An employee of a person described in subparagraph (1), if the employee provides only clerical or other comparable services and does not sign tax returns.
e. “Willful or reckless” means the same as “willful or reckless conduct” defined in section 6694(b)(2) of the Internal Revenue Code.
Terms Used In Iowa Code 421.62
- Fiduciary: A trustee, executor, or administrator.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Grantor: The person who establishes a trust and places property into it.
- Person: means any individual, firm, association, partnership, joint stock company, joint adventure, corporation, trustee, agency, or receiver, or any legal representative of any of the foregoing. See Iowa Code 453A.42
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- Testator: A male person who leaves a will at death.
- Trustor: The person who makes or creates a trust. Also known as the grantor or settlor.
- year: means twelve consecutive months. See Iowa Code 4.1
2. a. On or after January 1, 2020, a tax return preparer is required to include the tax return preparer’s PTIN on any income tax return or claim for refund prepared by the tax return preparer and filed with the department.
b. (1) A tax return preparer who violates paragraph “a” shall pay a civil penalty in the amount of fifty dollars for each violation unless the tax return preparer shows that the failure was reasonable under the circumstances and not willful or reckless conduct.
(2) The maximum aggregate penalty imposed upon a tax return preparer pursuant to this subsection shall not exceed twenty-five thousand dollars during any calendar year.
(3) The penalty shall be paid to the department.
c. Notwithstanding subsection 1, paragraph “d”, subparagraph (2), for purposes of this subsection, “tax return preparer” includes any of the following:
(1) An individual licensed as a certified public accountant or a licensed public accountant under chapter 542 or a similar law of another state.
(2) An individual admitted to practice law in this state or another state.
(3) An enrolled agent enrolled to practice before the federal internal revenue service pursuant to 31 C.F.R. §10.4.
3. The department shall draft relevant tax return forms to provide the space necessary for a tax return preparer to include a PTIN.
4. This section shall not be construed to limit the authority of the department to require any individual preparing a tax return to include the individual’s PTIN.