HF1800 Summary

• Expands definition of "client" from individuals to any person receiving tax preparation services, and broadens the definition of "tax preparer" to remove the threshold of fewer than ten clients per calendar year.

• Adds 14 new standards of conduct for tax preparers, including prohibitions on engaging in conduct subject to penalties under section 289A.60, making materially false claims, and failing to disclose material facts to clients.

• Increases administrative penalties from $1,000 to up to $5,000 per violation of cease and desist orders, establishes a new civil enforcement mechanism for cease and desist order violations with penalties up to $10,000 per violation, and adds new grounds for publishing names of penalized preparers.

• Extends the timeline for removal from the public list of penalized preparers from 90 days to three years after full compliance with fines, penalties, and remedial actions.

• Restructures preparer identification number requirements to explicitly require tax identification numbers on all returns, claims filed under chapter 290A, and refund claims, with penalties of $50 per failure ($500 if preparer lacks valid federal number).