                                 CODE OF VIRGINIA

AUTHORITY TO ENJOIN INCOME TAX RETURN PREPARERS (§ 58.1-348.2)

A. The Department may commence a civil action to enjoin any person who is an
income tax return preparer from further engaging in any conduct described in
subsection B or from further action as an income tax return preparer. The venue
for any action under this section shall be brought in the circuit court in the
circuit where the income tax return preparer resides or has his principal place
of business or in the jurisdiction in which the taxpayer with respect to whose
income tax return the action is brought resides. The court may exercise its
jurisdiction over such action separate and apart from any other administrative
or judicial action brought by the Commonwealth against such income tax return
preparer or any taxpayer.

B. In any action under subsection A, the court may enjoin the income tax return
preparer from further engaging in any conduct specified in this subsection if
the court finds that injunctive relief is appropriate to prevent the recurrence
of such conduct. The court may enjoin conduct when an income tax return preparer
has:

   1. Engaged in any conduct subject to penalty under &#xA7; 6694 or 6695 of the
   Internal Revenue Code, or subject to any criminal penalty provided by the
   Internal Revenue Code or this title; or

   2. Engaged in any other fraudulent or deceptive conduct that substantially
   interferes with the proper administration of the tax laws of the Commonwealth.

C. If the court finds that an income tax return preparer has continually or
repeatedly engaged in any conduct described in subsection B and that an
injunction prohibiting such conduct would not be sufficient to prevent such
person&#8217;s interference with the proper administration of the tax laws of
the Commonwealth, the court may enjoin such person from acting as an income tax
return preparer. The fact that that person has been enjoined from preparing
income tax returns for the United States or any other state in the five years
preceding the petition for an injunction shall establish a prima facie case for
an injunction under this section.

D. 1. The Department may bar or suspend any income tax return preparer, without
resort to the injunctive remedies described in this section, from filing returns
with the Department for repeated violations of § 58.1-348.4. Such disbarment or
suspension shall be subject to appeal pursuant to the procedures described in
subdivision D 2.

   2. a. Any income tax preparer barred or suspended pursuant to subdivision D 1
   may, within 30 days from the date of such barring or suspension, apply for
   relief to the Commissioner or appeal directly to the Circuit Court of the City
   of Richmond. Such application shall be in the form prescribed by the
   Department, and shall fully set forth the grounds upon which the tax preparer
   relies and all facts relevant to the tax preparer&#8217;s contention. The
   Commissioner may also require such additional information, testimony, or
   documentary evidence as he deems necessary to a fair determination of the
   application.
   				b. Any income tax preparer barred or suspended against whom an order or
   decision of the Commissioner has been adversely rendered pursuant to
   subdivision D 2 a may, within fifteen days of such order or decision, appeal
   from such order or decision to the Circuit Court of the City of Richmond.
   				c. Any income tax preparer barred or suspended shall not file any Virginia
   income tax returns pending application for relief to the Commissioner and
   appeal to the Circuit Court of the City of Richmond.

HISTORY: 2005, c. 48; 2018, c. 150.