                                 CODE OF VIRGINIA

REQUIREMENT THAT INCOME TAX RETURN PREPARERS USE IDENTIFICATION NUMBERS (§
58.1-348.3)

A. As used in this section, &#8220;PTIN&#8221; means the Preparer Tax
Identification Number that the Internal Revenue Service uses to identify tax
return preparers pursuant to 26 U.S.C. &#xA7; 6109.

B. For taxable years beginning on and after January 1, 2019, the Department
shall require any income tax return preparer to include his PTIN on any tax
return that he prepares or assists in preparing.

C. The Department shall promulgate regulations for using the PTIN as an
oversight mechanism to assess returns and to identify high error rates, patterns
of suspected fraud, and unsubstantiated bases for tax positions by income tax
return preparers.

D. 1. The Department shall establish formal and regular communication protocols
with the Internal Revenue Service to share and exchange PTIN information on
income tax return preparers who are suspected of fraud, who are disciplined, or
who are barred from filing tax returns with the Department or the Internal
Revenue Service.

   2. The Department may establish communication protocols with other states to
   exchange the enforcement and discipline information described in subdivision D
   1.

   3. Notwithstanding the provisions of &#xA7; 58.1-3 or any other provision of
   this title, the Department is authorized to provide to the Internal Revenue
   Service and other state tax or revenue agencies for their confidential use
   preparer and return data, including PTIN information, taxpayer names, taxpayer
   identification numbers, and other information as necessary to enforce the
   provisions of this section and &#xA7;&#xA7; 58.1-348.2 and 58.1-348.4.

E. The failure of an income tax return preparer to include his PTIN on a tax
return shall not be used by the Department as a basis for rejecting such return
as improperly filed.

HISTORY: 2018, c. 150.