Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 7 - Appeals, Taxpayer Representation, and Other Administrative Procedures › Rule 701-7.36 - Tax Return Preparers

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
For the purposes of this rule and for Iowa Code
				sections
				421.62,
				421.63,
				and
				421.64,
				the following definitions apply:
"An enrolled agent enrolled to practice before the
				  federal Internal Revenue Service (IRS) pursuant to
				  31
				  CFR §
												10.4 "
means an
				  individual who has an active status as an enrolled agent under
				  31
				  CFR §
											10.4(a) or (d)
				  and is not currently under suspension or disbarment from practice before the
				  IRS. An enrolled agent does not include an enrolled retirement plan agent under
				  31
				  CFR §
											10.4(b) or a
				  registered tax return preparer under
				  31
				  CFR §
											10.4(c).
"An individual admitted to practice law in this state
				  or another state "
means an individual who has an active license to
				  practice law in this state or another state, is considered in good standing
				  with the licensing authority of this or another state, and is currently
				  authorized to engage in the practice of law.
"An individual licensed as a certified public
				  accountant or a licensed public accountant under Iowa Code chapter 542 or a
				  similar law of another state"
means an individual who has an active
				  certified public accountant license or an active public accountant license
				  under Iowa Code chapter 542 or a similar law of another state and is in good
				  standing with the Iowa accountancy examining board or similar authority of
				  another state.
"Hour of continuing education "
means a
				  minimum of 50 minutes spent by a tax return preparer in actual attendance at or
				  completion of an IRS-approved provider of continuing education course.
"Income tax return or claim for refund"
means any return or claim for refund under Iowa Code chapter 422, excluding
				  withholding returns under Iowa Code section
				  422.16.
"New tax preparer"
means an individual who
				  qualifies as a "tax return preparer" under Iowa Code section
				  421.62
				  for the current tax year but would not have qualified as such during any prior
				  calendar year. See paragraph 7.36(8)
"a"
for examples regarding
				  who qualifies as a new tax preparer.
"Tax return preparer "
means any individual
				  who, for a fee or other consideration, prepares ten or more income tax returns
				  or claims for refund during a calendar year, or who assumes final
				  responsibility for completed work on such income tax returns or claims for
				  refund on which preliminary work has been done by another individual.
"Tax return preparer" does not include any of the
				  following:
1. An individual licensed
				as a certified public accountant or a licensed public accountant under Iowa
				Code chapter 542 or a similar law of another state.
2. An individual admitted to practice law in
				this state or another state.
3. An
				enrolled agent enrolled to practice before the federal IRS pursuant to
				31
				CFR §
											10.4.
4. A fiduciary of an estate, trust, or
				individual, while functioning within the fiduciary's legal duty and authority
				with respect to that individual or that estate or trust or its testator,
				trustor, grantor, or beneficiaries.
5. An individual who prepares the tax returns
				of the individual's employer, while functioning within the individual's scope
				of employment with the employer.
6.
				An individual employed by a local, state, or federal government agency, while
				functioning within the individual's scope of employment with the government
				agency.
7. An employee of a tax
				return preparer, if the employee provides only clerical or other comparable
				services and does not sign tax returns.
See paragraph 7.36(8)
"a"
for examples
				  regarding who qualifies as a tax return preparer.