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PRINTER'S NO. 2031
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
REFERRED TO COMMITTEE ON FINANCE, JUNE 6, 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,
every State depository and every debtor or creditor of the
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Commonwealth," in Department of Revenue, 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, is amended by adding a section to read:
Section 202.3. 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 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 per paid tax return
preparer.
(c) (1) The department may commence suit in a court of
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
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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 tax return that includes an understatement
of the taxpayer's legality 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
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
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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."
(2) An individual licensed as a certified public accountant
in another jurisdiction and practicing in this Commonwealth
under the CPA Law.
(3) An individual employed by a firm licensed under the 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
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jurisdiction and practicing in this Commonwealth under the 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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