Illinois ~ Corporate, Personal Income Taxes: Regulation Implements State Tax Preparer Oversight Act

CCH Tax Day Report

The Illinois Department of Revenue has adopted a regulation implementing a requirement under the State Tax Preparer Oversight Act that preparers of Illinois corporate and individual income tax returns include their preparer tax identification number (PTIN) on any return or claim for a tax refund prepared by the preparer. The PTIN requirement is effective for taxable years beginning on or after January 1, 2017. The term “income tax return preparer” means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any Illinois income tax return or refund claim. The preparation of a substantial portion of a return or claim for refund will be treated as the preparation of that return or claim for refund. The PTIN requirement applies only to a preparer who would be considered the “signing tax return preparer” under federal regulations and only to an income tax return preparer who holds an active PTIN at the time of filing the Illinois return or claim for refund. If there is an employment relationship or association between the individual required to sign a return and another person, the name, Employer Identification Number (EIN), and signature of that other person must be included on the filed return or claim for refund when required by department forms.

The department may investigate the actions of any income tax return preparer doing business in Illinois and may, after it holds misconduct hearings, bar or suspend an income tax return preparer from filing returns for good cause. A penalty of $50 for each offense, up to $25,000 each calendar year, may be imposed against any preparer for failing to provide his or her PTIN, unless it is shown that the failure is due to reasonable cause and not due to willful neglect.

Subscribers can view the regulation.

86 Ill. Adm. Code Sec. 9910

86 Ill. Adm. Code Sec. 9910, Illinois Department of Revenue, effective May 22, 2017

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