                                 CODE OF VIRGINIA

RETURNS OF INDIVIDUALS; NOTIFICATION OF TAX RETURN DATA BREACH (§ 58.1-341.2)

A. As used in this section:
			&#8220;Income tax return preparer&#8221; has the same meaning as in &#xA7;
58.1-302.
			&#8220;Return information&#8221; means a taxpayer&#8217;s identity and the
nature, source, or amount of his income, payments, receipts, deductions,
exemptions, credits, assets, liabilities, net worth, tax liability, tax
withheld, assessments, or tax payments. &#8220;Return information&#8221; does
not include information that is lawfully obtained from publicly available
information or from federal, state, or local government records lawfully made
available to the general public.
			&#8220;Signing income tax return preparer&#8221; means an income tax return
preparer who has the primary responsibility for the overall substantive accuracy
of the preparation of a return or claim for refund.
			&#8220;Taxpayer identity&#8221; means the name of a person with respect to
whom a return is to be filed and his taxpayer identification number as defined
in 26 U.S.C. &#xA7; 6109.

B. 1. Any signing income tax return preparer who prepares Virginia individual
income tax returns during a calendar year shall notify the Department without
unreasonable delay after the discovery or notification of unauthorized access
and acquisition of unencrypted and unredacted return information that
compromises the confidentiality of such information maintained by such signing
income tax return preparer and that creates a reasonable belief that an
unencrypted and unredacted version of such information was accessed and acquired
by an unauthorized person and that causes, or such preparer reasonably believes
has caused or will cause, identity theft or other fraud.

   2. Such signing income tax return preparer shall provide the Department with
   the name and taxpayer identification number of any taxpayer that may be
   affected by a compromise in confidentiality that requires notification
   pursuant to subdivision 1, as well as the name of the signing income tax
   return preparer, his preparer tax identification number, and such other
   information as the Department may prescribe.

C. An income tax return preparer shall complete the notice required by this
section on behalf of any of its employees who are signing income tax preparers
and who would otherwise be required to notify the Department pursuant to
subsection B.

HISTORY: 2018, cc. 283, 360.