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MS SB3076
Bill
AI Summary
- Imposes a $500 penalty per return on tax preparers found to be grossly negligent in preparing income tax returns, with the penalty applicable to each return so prepared
- Requires paid preparers to legibly sign each return and include their federal employer identification number or IRS-issued preparer tax identification number, with an additional $500 penalty for failure to do so when already assessed a gross negligence penalty
- Defines "grossly negligent" preparation to include understating tax liability by 25% or more, repeating errors after notification, claiming unsustainable positions, and reporting unsupported deductions or exemptions
- Authorizes the Commissioner of Revenue to assess penalties and collect from violators using the same procedures used for income tax assessment and collection, and to seek injunctions against repeat offenders to prevent them from continuing to prepare returns
- Amends confidentiality provisions to allow the Department of Revenue to disclose taxpayer information as necessary for administration and enforcement of preparer penalty provisions, effective July 1, 2010
Legislative Description
Income tax; revise the penalty for grossly negligent preparation of a return.
Last Action
Died In Committee
3/2/2010
Full Bill Text
No bill text available