[§231-15.4] Tax return preparers; preparer tax identification number required. (a) A tax return preparer shall have a valid preparer tax identification number.
(b) A tax return preparer shall not:
(c) A tax return preparer who violates subsection (b) shall be liable for the following penalties:
Each return or claim for refund prepared by a tax return preparer or submitted to the department in violation of subsection (b) shall be a separate violation; provided that preparing and submitting the same return or claim for refund shall not constitute two separate violations. The director of taxation may waive the penalties under this section in part or in full if the tax return preparer shows that the violation was due to reasonable cause.
(d) If within thirty days after the notice and demand of any penalty under subsection (c) is made, the tax return preparer:
no action to levy or file a proceeding in court to collect the remainder of the penalty shall be commenced except in accordance with subsection (e).
(e) An action that is stayed pursuant to subsection (d) may be brought thirty days after either of the following events, whichever occurs first:
Nothing in this subsection shall be construed to prohibit any counterclaim for the remainder of the penalty in any proceeding.
(f) If there is a final administrative determination pursuant to section 231-7.5, or a final judicial decision that the penalty assessed under subsection (c) should not apply, then that portion of the penalty assessed shall be voided. Any portion of the penalty that has been paid shall be refunded to the tax return preparer as an overpayment of tax without regard to any period of limitations that, but for this subsection, would apply to the making of the refund.
(g) At the request of the director of taxation, a civil action may be brought to enjoin a tax return preparer from further acting as a tax return preparer or from engaging in conduct as follows:
(h) The department may adopt rules pursuant to chapter 91 necessary to effectuate the implementation of this section.
(i) For purposes of this section:
"Preparer tax identification number" means an identifying number issued by the Internal Revenue Service in accordance with section 6109 of the Internal Revenue Code of 1986, as amended, and title 26 Code of Federal Regulations section 1.6109-2.
"Tax return preparer" shall have the same meaning as that term is defined in section 231-36.5. [L 2021, c 96, §3]