HB 2246 Summary

• Requires tax return preparers to obtain and maintain a valid preparer tax identification number (PTIN) issued by the Internal Revenue Service.

• Prohibits tax return preparers from preparing returns or claims for refund for compensation without a valid PTIN, or omitting the PTIN from returns when required by the Department of Taxation.

• Establishes tiered penalties for violations: $100 per violation for the first 100 violations, $500 per violation for violations 101-500, and $1,000 per violation for all subsequent violations.

• Authorizes the Director of Taxation to file civil court actions to enjoin tax return preparers from further practice or from engaging in prohibited conduct including fraud, deceptive practices, failure to sign returns, negotiating taxpayer checks without permission, and guaranteeing refunds.

• Effective July 1, 2050, with no penalties imposed on tax return preparers prior to January 1, 2021.