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1. For purposes of this section, unless the context otherwise requires:
a. “Department” means the Iowa department of revenue.
b. “PTIN” means a preparer tax identification number, as defined in Internal Revenue Service Notice 2011-6.
c. (1) “Tax return preparer” means any individual who, for a fee or other consideration, prepares ten or more tax returns or claims for refund under chapter 422 during a calendar year, or who assumes final responsibility for completed work on such tax returns or claims for refund under chapter 422 on which preliminary work has been done by another individual.
(2) “Tax return preparer” does not include any of the following:
(a) An individual licensed as a certified public accountant or a licensed public accountant under chapter 542 or a similar law of another state.
(b) An individual admitted to practice law in this state or another state.
(c) An enrolled agent enrolled to practice before the federal internal revenue service pursuant to 31 C.F.R. § 10.4.
(d) 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.
(e) An individual who prepares the tax returns of the individual's employer, while functioning within the individual's scope of employment with the employer.
(f) An individual employed by a local, state, or federal government agency, while functioning within the individual's scope of employment with the government agency.
(g) An employee of a person described in subparagraph (1), if the employee provides only clerical or other comparable services and does not sign tax returns.
d. “Willful or reckless” means the same as “willful or reckless conduct” defined in section 6694(b)(2) of the Internal Revenue Code.
2. a. On or after January 1, 2020, a tax return preparer is required to include the tax return preparer's PTIN on any tax return or claim for refund prepared by the tax return preparer and filed under chapter 422.
b. (1) A tax return preparer who violates paragraph “a” shall pay a civil penalty in the amount of fifty dollars for each violation unless the tax return preparer shows that the failure was reasonable under the circumstances and not willful or reckless conduct.
(2) The maximum aggregate penalty imposed upon a tax return preparer pursuant to this subsection shall not exceed twenty-five thousand dollars during any calendar year.
(3) The penalty shall be paid to the department.
3. The department shall draft relevant tax return forms to provide the space necessary for a tax return preparer to include a PTIN.
4. This section shall not be construed to limit the authority of the department to require any individual preparing a tax return to include the individual's PTIN.
(a) As security, each licensee shall deposit and thereafter maintain on deposit with the Treasurer cash in an amount not less than, or securities having a market value not less than, such amount as the commissioner may find and order from time to time as necessary to secure the faithful performance of the obligations of the licensee with respect to money transmission in California. These securities shall be subject to the approval of the commissioner and shall consist of interest-bearing bonds, notes, or other obligations of the United States or any agency or instrumentality thereof, or of the State of California, or of any city, county, or city and county, political subdivision or district of the State of California, or that are guaranteed by the United States or the State of California.
(b) So long as a licensee that maintains securities on deposit with the Treasurer pursuant to this section is solvent, that licensee shall be entitled to receive any interest paid on the securities.
(c) In lieu of the deposit of cash or securities pursuant to subdivision (a), a licensee may deliver to the commissioner the bond of a surety company, in form and written by a company satisfactory to the commissioner, in an amount not less than the amount of the deposit of cash or securities required of the licensee, conditioned upon the faithful performance of the obligations of the licensee with respect to money transmission in California. The commissioner shall deposit such bond with the Treasurer.
(d) A licensee that sells or issues payment instruments or stored value shall maintain securities on deposit or a bond of a surety company in an amount of no less than five hundred thousand dollars ($500,000) or 50 percent of the average daily outstanding payment instrument and stored value obligations in California, whichever is greater; provided that such amount shall not be more than two million dollars ($2,000,000).
(e) A licensee that engages in receiving money for transmission shall maintain securities on deposit or a bond of a surety company in an amount greater than the average daily outstanding obligations for money received for transmission in California, provided that such amount shall not be less than two hundred fifty thousand dollars ($250,000) nor more than seven million dollars ($7,000,000).
(f) The amount of securities on deposit or a bond of a surety company required to be maintained by subdivisions (d) and (e) are cumulative.
(g) The money and securities deposited with the Treasurer pursuant to this section and the proceeds of any bond held by the Treasurer pursuant to this section shall constitute a trust fund for the benefit of persons in California who purchased payment instruments or stored value from the licensee or its agent, or persons in California who delivered to any licensee or its agent money or monetary value for money transmission. Suit to recover on any bond may be brought by any party aggrieved in a court of competent jurisdiction of any county in which the licensee has an agent.
(h) Securities on deposit or a bond shall cover claims for so long as the commissioner specifies, but for at least four years after the licensee ceases to provide services under this division in this state. However, the commissioner may permit the amount of the security to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's payment instruments or stored value obligations outstanding, or outstanding money or monetary value received for money transmission, is less than the deposit or bond. The commissioner may permit a licensee to substitute another form of security acceptable to the commissioner for the security effective at the time the licensee ceases to provide money transmissions in this state.
Cite this article: FindLaw.com - Iowa Code Title X. Financial Resources [Chs. 421-454] § 421.62. Inclusion of preparer tax identification number - last updated January 01, 2020 | https://codes.findlaw.com/ia/title-x-financial-resources-chs-421-454/ia-code-sect-421-62/
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