Code of Vermont Rules › Agency 10 - AGENCY OF ADMINISTRATION › Sub-Agency 060 - DEPARTMENT OF TAXES › Chapter 005 - CONFIDENTIAL PREPARATION OF RETURNS › Section 10 060 005 - CONFIDENTIAL PREPARATION OF RETURNS

Current through June, 2024
Section 1.5901
				CONFIDENTIAL PREPARATION OF RETURNS
(a) 32
				V.S.A. Sections 5901-5903 are effective for returns or declarations filed on or
				after July 1, 1972.
(b) The written
				declaration referred to in
				32 V.S.A.
				§
											5901(a) shall be made
				pursuant to the form prescribed by the commissioner on the Vermont returns of
				tax imposed by Chapter 151 of Title 32, Vermont Statutes Annotated, or
				declarations thereof. On and after July 1, 1972, in the event that the above
				mentioned forms do not contain said declaration, the following declaration
				(printed, typed or written) shall be attached to said forms:
"I declare, under the penalties of perjury, that under
				  32 V.S.A.
				  §
												5901 information supplied to me by the
				  taxpayer has not been and will not be used for any purpose other than for the
				  preparation of this return, or made available to another person or persons for
				  any purpose, unless (1) a separate valid consent form, as prescribed by
				  32 V.S.A.
				  §
												5901(b), is signed by
				  the taxpayer and retained by me, or (2) the regulations of the commissioner so
				  permit."
(c) The consent
				required by Section 5901(a)(2) shall be retained by the preparer of the return
				to which it relates of a period of three years from the date on which the
				return to which it relates is due or is filed, whichever is later. One consent
				may be used both for more than one return or declaration. A consent will
				contain the following information and be kept in such a place as to be readily
				available for review by any authorized agent of the Vermont Department of
				Taxes:
(1) The name of the tax return
				preparer,
(2) The name of the
				taxpayer,
(3) The specific purpose
				for which the consent is being signed,
(4) The date on which such consent is
				signed,
(5) A statement that the
				tax return information may not be used by the tax return preparer for any
				purpose other than that stated in the consent, and
(6) A statement by the taxpayer that he
				consents to the use of such information for the specific purpose described in
				subparagraph (3) of this paragraph.
(d) The prohibition contained in Section
				5901(a)(1) shall apply for the tax year to which it relates and all subsequent
				years.
(e) The content required by
				Section 5901(a) (2) shall apply only to the tax year to which if specifically
				relates.
(f) The tax return
				preparer must sign the declaration personally and not use a stamp or firm
				name.
(g) The term "tax return
				information" means any information, including but not limited to a taxpayer's
				name, address, and social security number, furnished for, or in connection
				with, the preparation of a tax return of any taxpayer and which is furnished by
				the taxpayer to a tax return preparer or by the tax return preparer to any
				other person. Information furnished by taxpayer includes information which is
				furnished on behalf of the taxpayer, such as information furnished by a
				guardian for a minor, by a duly authorized agent for his principal, by a
				fiduciary for an estate or trust, by an officer, receiver, trustee in
				bankruptcy, or assignee for a corporation, or pursuant to a duly executed power
				of attorney.
(h)
(1) A tax return preparer who is lawfully
				engaged in the practice of law may disclose or use the tax return information
				of a taxpayer who is a client for, or in connection with, the rendering of
				legal services to such taxpayer, such as estate planning, preparation of trial
				briefs, or other services authorized or required by the taxpayer.
(2) A tax return preparer who is an
				accountant and prepares books of account, working papers, accounting,
				statements or reports, or performs other services for a taxpayer may disclose
				or use the tax return information of such taxpayer for, or in connection with,
				the prepartion of such books, papers, statements, or reports, or the
				performance of such other services authorized or required by the
				taxpayer.
(i)
(1) A tax return preparer may disclose or use
				any information which is identical to any tax return information which has been
				furnished to him if such identical information was obtained otherwise than in
				connection with the preparation of a tax return.
(2) A tax return preparer may retain tax
				return information of a taxpayer, including copies of tax returns or data
				processing tapes prepared on the basis of such tax return information, and may
				use such information in connection with an audit by the State of Vermont or the
				Internal Revenue Service of any tax return.
(3) Any tax return preparer may compile and
				maintain a separate list containing the names and address of taxpayers whose
				tax returns he has prepared or processed. This list may be used by the compiler
				solely to contact the taxpayers on the list for the purpose of offering future
				tax return preparation or processing services to such taxpayers. The compiler
				of the list may not transfer the taxpayer list, or any part thereof, to any
				other person unless such transfer takes place in conjunction with the sale or
				other disposition of the tax return preparation business of such compiler. A
				person who acquires a taxpayer list, or a part thereof, in conjunction with
				such a sale or other disposition shall be subject to the provisions of this
				paragraph with respect to such list as if he had been the compiler of such
				list. All consents filed with the seller of such list shall expire.
(j)
(1) Information received by a tax return
				preparer from the taxpayer for the purpose of preparing returns of tax imposed
				by Chapter 151 of Title 32, Vermont Statutes Annotated, or declaration thereof,
				may be used by that preparer for the purpose of preparing federal tax returns
				and declarations without first obtaining a consent prescribed in
				32 V.S.A.
				§
												5901(a)(2).
(2) In filing returns for other states,
				information given by the taxpayer to the tax return preparer for the purpose of
				preparing returns or declartion, which information may be required to be
				disclosed by the taxing authorities of the other state, may be so disclosed
				without first obtaining consent prescribed in
				32 V.S.A.
				§
												5901(a)(2). For
				instance, the preparation of a New Hampshire commuter's tax return may require
				documentary support by way of a copy of the Vermont State Income Tax Return;
				such Vermont return may be submitted to New Hampshire taxing authorities
				without first obtaining a consent.