Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part XI - Returns › Section 12-725-2 - Signing of Connecticut returns prepared by a person other than the taxpayer

Current through July 10, 2024
(a)
(1) An individual who is a return preparer
				(as defined in subsection (b) of this section), with respect to a Connecticut
				return, shall sign such return in the appropriate space provided on the return
				after it is completed and before it is presented to the taxpayer (or nontaxable
				entity) for signature. The preparer shall sign the return in the manner
				prescribed in forms, instructions, or other appropriate guidance of the
				department. In addition, any Connecticut return prepared by a return preparer
				shall bear both a Connecticut tax registration number, if any, and such federal
				identification number as is necessary for securing proper identification of the
				preparer, the preparer's employer, or both, as may be required by forms and
				instructions. If the preparer is unavailable for signature, another preparer
				shall review the entire preparation of the return, and then shall sign such
				return and furnish such identifying number(s).
(2) Each Connecticut return which is prepared
				by one or more return preparers shall have typed or printed the name or names
				of the individual preparer(s) or the name of the firm (if applicable), and the
				street address, city, state and postal ZIP code of such preparer's place of
				business where the preparation of the Connecticut income tax return was
				completed. If such place of business is not maintained on a year-round basis,
				the return shall bear the street address, city, state and postal ZIP code of
				the preparer's principal office or business location which is maintained on a
				year-round basis, or if none, of the preparer's residence.
(3) If more than one return preparer is
				involved in the preparation of a Connecticut return, the individual preparer
				who has the primary responsibility as between or among the preparers for the
				overall substantive accuracy of the preparation of such return shall be
				considered to be the return preparer for purposes of this section.
(4) The following examples illustrate the
				application of the provisions of subdivisions (1) through (3) of this
				subsection.
Example 1: Assume Y, a lawyer, is an employee of law firm X
				  and is employed to prepare income tax returns. Also, assume law firm X has been
				  hired by taxpayer T to prepare his 1992 Connecticut income tax return. Employee
				  Y is assigned to obtain the information necessary for completing T's
				  Connecticut income tax return and for making determinations with respect to the
				  proper application of the tax laws to such information in order to determine
				  T's Connecticut income tax liability. Employee Y then forwards such information
				  to C, a computer tax service which performs the mathematical computations and
				  prints the Connecticut income tax return form by means of computers. C then
				  sends the completed Connecticut income tax return to Y who reviews its
				  accuracy. Y is the individual preparer who is primarily responsible for the
				  overall accuracy of taxpayer T's Connecticut income tax return. Therefore,
				  employee Y shall sign the Connecticut income tax return as the preparer and
				  indicate on such return the name and address of her employer, law firm
				  X.
Example 2: Assume company A is a national accounting firm
				  which receives compensation for preparation of income tax returns. B and C, who
				  are employees of A, are involved in preparing the 1992 Connecticut partnership
				  return of partnership P. After they complete such return, including the
				  gathering of the necessary information, the proper application of the tax laws
				  to such information, and the performance of the necessary mathematical
				  computations, D, a supervisory employee of company A, reviews the Connecticut
				  partnership return. As part of this review, D reviews the information provided
				  and the application of the tax laws to this information. The mathematical
				  computations are proved by E, an employee in A's comparing and proving
				  department. The policies and practices of company A require that employee F
				  finally review the Connecticut partnership return. The scope of F's review
				  includes reviewing the information provided by applying to this information F's
				  knowledge of partnership P's affairs, observing that company A's policies and
				  practices have been followed, and making the final determination with respect
				  to the proper application of the tax laws. F may or may not exercise these
				  responsibilities, or may exercise them to a greater or lesser extent, depending
				  on the degree of complexity of the Connecticut income tax return, F's
				  confidence in D (or B and C) and other factors. F is the individual preparer
				  who is primarily responsible for the overall accuracy of partnership P's
				  Connecticut partnership return. Therefore, F shall sign the Connecticut
				  partnership return as the preparer and indicate thereon the name and address of
				  his firm, company A.
Example 3: Assume company C maintains an office in Seattle,
				  Washington for the purpose of preparing income tax returns for compensation.
				  Company C makes compensatory arrangements with individuals (but provides no
				  working facilities) in several states to collect information from taxpayers and
				  to make determinations with respect to the proper application of the tax laws
				  to the information in order to determine the tax liabilities of such taxpayers.
				  Also, assume E, an individual, who has such an arrangement in Connecticut with
				  company C, collects information from T, a taxpayer, regarding T's Connecticut
				  income tax return and completes a worksheet kit supplied by company C which is
				  stamped with E's name and an identification number assigned to E by C. In this
				  process, E classifies this information in appropriate income and deduction
				  categories for the tax determination. The completed worksheet kit signed by E
				  is then mailed to company C. When the worksheet kit is received in company C's
				  office, it is reviewed by D, an employee there, to ensure that the kit was
				  properly completed. Employee D does not review the information obtained from
				  taxpayer T for its validity or accuracy. D may, but does not, make the final
				  determination with respect to the proper application of tax laws to the
				  information. The data from the worksheet is then entered into a computer and
				  the Connecticut income tax return form is completed. Such return is prepared
				  for submission to T with filing instructions. Based on the above facts, E is
				  the individual preparer primarily responsible for the overall accuracy of
				  taxpayer T's Connecticut income tax return. Therefore, E shall sign such return
				  as the preparer and indicate thereon the name and address of company C.
Example 4: Assume company X employs A, B and C to prepare
				  income tax returns for taxpayers. Employees A and B have each been assigned to
				  collect information from taxpayers and apply the tax laws to the information.
				  Such taxpayers' Connecticut income tax return forms are completed by a computer
				  service. On the day the returns are ready for A's and B's signatures as paid
				  preparers, A is out of the city for one week on another assignment and B is on
				  detail to another office for the day. Employee C may sign the Connecticut
				  income tax return prepared by A, provided that C reviews the information
				  obtained by A and the preparation of the return by A. Employee C may not sign
				  the Connecticut income tax return prepared by B because B is available. In
				  addition, each Connecticut income tax return shall indicate thereon the name
				  and address of company X.
(5)
(A)
				After the return is signed by the preparer, no person other than the preparer
				may alter any entries thereon other than to correct arithmetical errors
				discernible on the return. The employer of the preparer or the partnership in
				which the preparer is a partner, or the preparer (if not employed or engaged by
				a preparer and not a partner of a partnership which is a preparer), shall
				retain a copy of the return. A record of any arithmetical errors corrected
				shall be retained by the person required to retain the copy of the Connecticut
				return and be made available upon request.
(B) If mechanical preparation of the
				Connecticut return is accomplished by computer not under the control of the
				individual preparer, then the signature requirement of this subsection may be
				satisfied by a signed attestation by the individual preparer attached to such
				return that all the information contained in the return was obtained from the
				taxpayer and is true and correct to the best of such preparer's knowledge, but
				only if such information (including any supplemental written information
				provided and signed by such preparer) is not altered on the return by another
				person. For purposes of the preceding sentence, the correction of arithmetical
				or clerical errors discernible from the information submitted by the preparer
				does not constitute an alteration. The information submitted by the preparer
				shall be retained by the employer of the preparer or by the partnership in
				which the preparer is a partner, or by the preparer (if not employed or engaged
				by a preparer and not a partner of a partnership which is a preparer). A record
				of any arithmetical or clerical errors corrected shall be retained by the
				person required to retain the information submitted by the preparer and made
				available upon request.
(C) Any
				items required to be retained and kept available for inspection under
				subparagraphs (A) and (B) of this subdivision shall be retained and kept
				available for inspection for a period of six years after the due date of the
				Connecticut return, including extensions. Any retained items requested by the
				Department to be submitted for review shall be signed by the return
				preparer.