Regular Session 2019-2020 House Bill 1583 P.N. 2091

PRIOR PRINTER'S NO. 2031

PRINTER'S NO. 2091

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1583

Session of

2019

INTRODUCED BY PEIFER, BERNSTINE, DUNBAR, GREINER, JAMES,

MILLARD, MOUL, PICKETT AND RYAN, JUNE 6, 2019

AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,

AS AMENDED, JUNE 11, 2019

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled,

as amended, "An act relating to the finances of the State

government; providing for cancer control, prevention and

research, for ambulatory surgical center data collection, for

the Joint Underwriting Association, for entertainment

business financial management firms, for private dam

financial assurance and for reinstatement of item vetoes;

providing for the settlement, assessment, collection, and

lien of taxes, bonus, and all other accounts due the

Commonwealth, the collection and recovery of fees and other

money or property due or belonging to the Commonwealth, or

any agency thereof, including escheated property and the

proceeds of its sale, the custody and disbursement or other

disposition of funds and securities belonging to or in the

possession of the Commonwealth, and the settlement of claims

against the Commonwealth, the resettlement of accounts and

appeals to the courts, refunds of moneys erroneously paid to

the Commonwealth, auditing the accounts of the Commonwealth

and all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

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every State depository and every debtor or creditor of the

Commonwealth," in Department of Revenue, AMENDING THE ACT OF

MARCH 4, 1971 (P.L.6, NO.2), ENTITLED "AN ACT RELATING TO TAX

REFORM AND STATE TAXATION BY CODIFYING AND ENUMERATING

CERTAIN SUBJECTS OF TAXATION AND IMPOSING TAXES THEREON;

PROVIDING PROCEDURES FOR THE PAYMENT, COLLECTION,

ADMINISTRATION AND ENFORCEMENT THEREOF; PROVIDING FOR TAX

CREDITS IN CERTAIN CASES; CONFERRING POWERS AND IMPOSING

DUTIES UPON THE DEPARTMENT OF REVENUE, CERTAIN EMPLOYERS,

FIDUCIARIES, INDIVIDUALS, PERSONS, CORPORATIONS AND OTHER

ENTITIES; PRESCRIBING CRIMES, OFFENSES AND PENALTIES," IN

PERSONAL INCOME TAX, providing for paid tax return preparers

and required information on personal income tax return.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of April 9, 1929 (P.L.343, No.176), known

as The Fiscal Code, MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE

TAX REFORM CODE OF 1971, is amended by adding a section to read:

Section 202.3 336.3 . Paid Tax Return Preparers; Required

Information on Personal Income Tax Returns.--(a) For taxable

years beginning on or after January 1, 2020, the department

shall require that any personal income tax return prepared by a

paid tax return preparer shall be signed by the paid tax return

preparer and shall bear the paid tax return preparer's Internal

Revenue Service preparer tax identification number.

(b) (1) The department may impose an administrative penalty

of $50 FIFTY DOLLARS ($50) on a paid tax return preparer each

time the paid tax return preparer fails to sign the return or

fails to provide the preparer's tax identification number,

unless it can be shown that the failure was due to reasonable

cause and not willful or reckless conduct.

(2) The maximum amount imposed on any individual paid tax

return preparer with respect to returns filed during any

calendar year shall not exceed $25,000 TWENTY-FIVE THOUSAND

DOLLARS ($25,000) per paid tax return preparer.

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competent jurisdiction to enjoin any paid tax return preparer

from further engaging in any conduct described in paragraph (2)

or from further action as a paid tax return preparer.

(2) The court may enjoin the paid tax return preparer from

further engaging in any conduct specified in this subsection if

the court finds that the preparer committed any of the following

activities and that injunctive relief is appropriate to prevent

the recurrence of the activity:

(i) Prepared a personal income tax return that includes an

understatement of a taxpayer's liability due to an unreasonable

position.

(ii) Prepared a PERSONAL INCOME tax return that includes an

understatement of the A taxpayer's legality LIABILITY due to

willful or reckless conduct on the part of the paid tax return

preparer.

(iii) Where required, failed to furnish a copy of the

personal income tax return to the department.

(iv) Where required, failed to sign the personal income tax

return.

(v) Where required, failed to furnish the Internal Revenue

Service preparer tax identification number.

(vi) Where required, failed to retain a copy of the personal

income tax return.

(vii) Failed to exercise due diligence in determining

eligibility for tax benefits.

(viii) Negotiated a check issued by the department without

permission of the taxpayer.

(ix) Engaged in criminal conduct incompatible with the

duties of a paid tax preparer.

(x) Misrepresented the paid tax return preparer's

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experience, education or licensure.

(xi) Guaranteed payment of a personal income tax refund or

the allowance of a personal income tax credit.

(xii) Engaged in any other fraudulent or deceptive activity

that substantially interferes with the proper administration of

the tax laws of this Commonwealth.

(3) If the court finds that a paid tax return preparer has

continually or repeatedly engaged in conduct described in

paragraph (vii) and that an injunction prohibiting the conduct

would not be sufficient to prevent the person's interference

with the tax laws of this Commonwealth, the court may enjoin the

person from acting as a paid tax return preparer.

(4) The fact that a person has been enjoined from preparing

tax returns for the United States or any other jurisdiction in

the five years preceding the petition of an injunction shall

establish a prima facie case for an injunction to be issued

under this subsection.

(d) As used in this section:

"Department" shall mean the Department of Revenue of the

Commonwealth.

"Paid tax return preparer" shall mean a person who prepares

for compensation, or employs one or more persons to prepare for

compensation, a personal income tax return required to be filed

under this act. Preparation of a substantial portion of any

personal income tax return shall be treated as if it were the

preparation of any personal income tax return. The term shall

not include:

(1) An individual licensed as a certified public accountant

under the act of May 26, 1947 (P.L.318, No.140), known as the

"CPA Law."

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(2) An individual licensed as a certified public accountant

in another jurisdiction and practicing in this Commonwealth

under the CPA Law. "CPA LAW."

(3) An individual employed by a firm licensed under the CPA

Law "CPA LAW" and who is preparing a return under the

supervision of an individual described in paragraph (1) or (2).

(4) An individual employed by a firm licensed in another

jurisdiction and practicing in this Commonwealth under the CPA

Law "CPA LAW" and who is preparing a return under the

supervision of an individual described in paragraph (1) or (2).

(5) An individual designated by the Internal Revenue Service

as an enrolled agent.

(6) An individual admitted to practice law by a court of

record of this Commonwealth.

"Unreasonable position" shall have the same meaning as

provided by section 6694(a)(2) of the Internal Revenue Code

(Public Law 99-514, 26 U.S.C. § 6694 (a)(2)).

"Willful and reckless conduct" shall have the same meaning as

provided by section 6694(b)(2) of the Internal Revenue Code

(Public Law 99-514, 26 U.S.C. § 6694 (b)(2)).

Section 2. This act shall take effect in 60 days.

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