Tax Preparation Businesses

Link to law: http://arcweb.sos.state.or.us/pages/rules/oars_800/oar_800/800_025.html
Published: 2015

The Oregon Administrative Rules contain OARs filed through November 15, 2015

 

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BOARD OF TAX PRACTITIONERS





 

DIVISION 25
TAX PREPARATION BUSINESSES

800-025-0010
Firm Names
(1) The name under which a tax preparation
business offers and/or performs services must be in compliance with the laws and
rules of the Oregon Corporation Division.
(2) The designation Licensed
Tax Preparer or reference to the title Licensed Tax Preparer in any manner, including
initials or acronyms, shall not be included as part of a firm name.
Stat. Auth.: ORS 670.310(1) & 670.730(10)
Stats. Implemented: ORS
673.643 & 673.605 –673.990
Hist.: TSE 1-1985, f. &
ef. 1-15-85; TSE 4-1992, f. & cert. ef. 5-15-92; BTSE 1-2001, f. & cert.
ef. 4-19-01; BTP 3-2005, f. 8-31-05, cert. ef. 9-1-05; BTP 1-2015, f. 1-16-15, cert.
ef. 2-1-15
 
800-025-0020
Tax Preparation Business Registration
(1) A tax preparation business shall
not offer services to the public until the business has:
(a) Complied with applicable
laws and rules of the Oregon Corporation Division;
(b) Registered with the Board,
on a Board-approved application form, the tax preparation business name, address,
telephone number, and e-mail address; the name(s) of the owner(s) of the business;
and the name of the individual(s) responsible under OAR 800-025-0040 for the tax
activities of the business; and
(c) Paid the tax preparation
business registration fee required under OAR 800-025-0025.
(2) Within 15 business days
of a change of name or ownership, a tax preparation business must file a new business
registration with the Board and pay a new business registration fee.
(3) A person who offers tax
preparation services under more than one tax preparation business name must register
each such name as a separate business.
(4) All tax preparation businesses
shall comply with State Fire Marshall Address Identification requirements.
Stat. Auth.: ORS 673.730(5)
Stats. Implemented:
Hist.: TSE 1-1985, f. &
ef. 1-15-85; TSE 13-1991(Temp), f. & cert. ef. 11-25-91; TSE 14-1991, f. 11-25-91,
cert. ef. 1-1-92; TSE 4-1992, f. & cert. ef. 5-15-92; BTP 3-2005, f. 8-31-05,
cert. ef. 9-1-05; BTP 1-2008, f. 1-14-08, cert. ef. 2-1-08; BTP 1-2009, f. &
cert. ef. 2-5-09; BTP 1-2010, f. 1-19-10, cert. ef. 2-1-10; BTP 1-2011, f. 1-24-11,
cert. ef. 2-1-11; BTP 1-2012, f. 1-30-12, cert. ef. 2-1-12; BTP 1-2014, f. 1-16-14,
cert. ef. 2-1-14
800-025-0023
Reporting Closing of Business; Address
and Phone Changes
A tax preparation business shall notify
the Board within 15 business days of:
(1) Termination of the tax
preparation business; or
(2) A change in the mailing
address, physical address, e-mail address, or telephone number(s) of the tax preparation
business.
Stat. Auth.: ORS 670.310(1) & 670.730(10)
Stats. Implemented: ORS
673.643 & 673.605 - 673.990
Hist.: TSE 7-1991, f. &
cert. ef. 10-28-91; BTP 2-2007, f. 1-12-07, cert. ef. 2-1-07; BTP 1-2008, f. 1-14-08,
cert. ef. 2-1-08; BTP 1-2009, f. & cert. ef. 2-5-09; BTP 1-2010, f. 1-19-10,
cert. ef. 2-1-10; BTP 1-2011, f. 1-24-11, cert. ef. 2-1-11; BTP 1-2015, f. 1-16-15,
cert. ef. 2-1-15
800-025-0025
Renewal of Tax Preparation Business
Registration
(1) Tax preparation business registrations
shall expire annually on June 15, except that combination tax preparation business
registration/tax preparer licenses shall expire annually on October 15.
(2) At least 30 calendar
days prior to the registration expiration date each year, the Board shall attempt
to notify each tax preparation business, using the contact information they provided
to the Board, that their tax preparation business registration is up for renewal.
(3) Renewal registrations
shall be issued to a qualifying tax preparation business upon receipt and validation
of a completed registration renewal application and the fee for registering a tax
preparation business specified in OAR 800-020-0025(14) or the fee for a combined
tax consultants or tax preparers license and tax preparation business registration
specified in OAR 800-020-0025(15).
(4) A tax preparation business
whose registration has expired shall not perform tax preparation services for the
public, for a fee, or offer such services until the tax business submits a new tax
preparation business registration application and the application process has been
completed.
Stat. Auth.: ORS 670.310(1) & 670.730(10)
Stats. Implemented: ORS
673.643 & 673.605 - 673.990
Hist.: TSE 8-1991, f. &
cert. ef. 10-28-91; BTP 1-2004, f. 1-28-04, cert. ef. 2-1-04; BTP 3-2005, f. 8-31-05,
cert. ef. 9-1-05; BTP 1-2008, f. 1-14-08, cert. ef. 2-1-08; BTP 1-2009, f. &
cert. ef. 2-5-09; BTP 1-2010, f. 1-19-10, cert. ef. 2-1-10; BTP 1-2011, f. 1-24-11,
cert. ef. 2-1-11; BTP 1-2015, f. 1-16-15, cert. ef. 2-1-15
800-025-0027
Eligibility for Combined Business Registration and Tax Consultant/Preparer License
(1) A tax preparation business
is not eligible for a combined license and registration under OAR 800-020-0025(15)
unless at least one (1) of the owners of the tax preparation business is a Licensed
Tax Consultant or Licensed Tax Preparer. As used in this section, "owner" means
an individual who owns at least ten (10) percent of the tax preparation business.
(2) A tax preparation business,
including a tax preparation business that must file a new registration due to a
change of name or ownership, is not eligible for a combined license and registration
under OAR 800-020-0025(15) unless the registration submitted is:
(a) A new registration, at the
time of application for the owner's tax consultant's or tax preparer's license;
(b) A renewal registration,
before the expiration date of the current registration.
(3) A licensee who owns more
than one (1) tax preparation business is eligible for only one combined license
and business registration under OAR 800-020-0025(17). A licensee must pay the full
business registration fee for each additional tax preparation business under OAR
800-020-0025(17).
Stat. Auth.:

Stats. Implemented:

Hist.: TSE 9-1991, f. &
cert. ef. 10-28-91; BTP 3-2005, f. 8-31-05, cert. ef. 9-1-05; BTP 2-2007, f. 1-12-07,
cert. ef. 2-1-07; BTP 1-2009, f. & cert. ef. 2-5-09; BTP 1-2010, f. 1-19-10,
cert. ef. 2-1-10; BTP 1-2011, f. 1-24-11, cert. ef. 2-1-11; BTP 1-2011, f. 1-24-11,
cert. ef. 2-1-11; BTP 1-2012, f. 1-30-12, cert. ef. 2-1-12
800-025-0029
Displaying Business Registration
Tax preparation businesses shall post their current registration in public view in their place of business.
Stat. Auth.: ORS 673.643 & 673.730(5)

Stats. Implemented:

Hist.: TSE 4-1992, f. & cert. ef. 5-15-92; BTP 1-2010, f. 1-19-10, cert. ef. 2-1-10
800-025-0030
Branch Offices
(1) A tax preparation business shall
not operate any branch office until:
(a) The tax preparation business
has complied with all laws and rules of the Board concerning tax business registration;
(b) The mailing address,
physical address, e-mail, phone number(s) of the branch office, and the name and
license number of the resident consultant for the branch office have been submitted
to the Board; and
(c) The tax preparation business
has paid an annual fee for the branch office registration for that location as required
under OAR 800-020-0025(19).
(2) Branch office registrations
shall expire annually on the expiration date of the associated tax business registration.
(3) At least 30 calendar
days before the expiration of a branch office registration, the Board shall attempt
to notify each tax preparation business, using the contact information the tax preparation
business has provided to the Board that their tax preparation branch office registration
is up for renewal.
(4) Renewal branch office
registrations shall be issued to qualifying tax preparation businesses upon receipt
of the required annual registration fee.
(5) A tax preparation business
operating branch offices shall notify the Board within 15 business days of:
(a) Change of mailing address,
physical address, e-mail address, or phone number(s) of the branch office.
(b) Change in Resident Consultant
and/or Designated Consultant of the branch office.
(c) Closing the branch office.
(6) Branch offices must be
conducted under the same name as the principal office. This name and current registration
shall be posted in public view in each branch office.
(7) The name of the Designated
Consultant and the name of the Resident Consultant must be posted in public view
in each branch office.
Stat. Auth.: ORS 670.310(1) & 670.730(10)
Stats. Implemented: ORS
673.643 & 673.605 - 673.990
Hist.: TSE 1-1985, f. &
ef. 1-15-85; TSE 10-1991, f. & cert. ef. 10-28-91; TSE 5-1992, f. 5-15-92, cert.
ef. 7-1-92; TSE 2-1996, f. & cert. ef. 12-30-96; BTP 3-2005, f. 8-31-05, cert.
ef. 9-1-05; BTP 1-2008, f. 1-14-08, cert. ef. 2-1-08; BTP 1-2009, f. & cert.
ef. 2-5-09; BTP 1-2010, f. 1-19-10, cert. ef. 2-1-10; BTP 1-2011, f. 1-24-11, cert.
ef. 2-1-11; BTP 1-2015, f. 1-16-15, cert. ef. 2-1-15
800-025-0040
Designated Consultants
(1) A tax preparation business shall
not engage in the preparation of personal income tax returns for the public, or
offer such services, until the business has designated a Licensed Tax Consultant
or other authorized person ("Designated Consultant") as the responsible individual.
A form prescribed by the Board shall be signed by the Designated Consultant and
signed by the owner or authorized representative of the tax preparation business.
(2) The Designated Consultant
shall be responsible for all tax preparation activities of the business. The Designated
Consultant and the designating business shall each be responsible for the business
compliance with laws and rules of the Board.
(3) A Designated Consultant
will cease to be responsible for a business's tax preparation
services upon receipt by
the Board of written notice from the consultant or business.
(4) A Licensed Tax Consultant
may act as the Designated Consultant for only one tax preparation business, except
by Board approval for written application for waiver.
(5) An application for waiver
to serve as a Designated Consultant for more than one (1) tax preparation business
shall set forth the following:
(a) The name and address
of the tax preparation business for which the Licensed Tax Consultant is presently
serving as the Designated Consultant;
(b) The name and address
of the additional tax preparation business for which the Licensed Tax Consultant
is requesting approval to serve as the Designated Consultant;
(c) A detailed plan how each
tax preparation business will be supervised in carrying out the duties as a Designated
Consultant;
(d) The financial relationship
of the proposed Designated Consultant and the tax preparation businesses; and
(e) Unusual or extenuating
circumstances why approval should be granted.
(6) In determining whether
a Licensed Tax Consultant will be approved to act as a Designated Consultant for
more than one (1) tax preparation business, the Board:
(a) May approve an application
for waiver only wherein the Licensed Tax Consultant has an ownership interest in
the tax preparation business or unusual or extenuating circumstances exist resulting
in undue hardship such as the death of a Designated Consultant. The Board may limit
the Licensed Tax Consultant designation period; and
(b) Shall consider the Licensed
Tax Consultant's past record of compliance with ORS 673.605 to 673.735, rules of
the Board, statutes of the State of Oregon, together with information set forth
in the application for waiver, particularly the feasibility of the plan in supervising
the corporation, firm, or partnership.
(7) A tax preparation business
shall notify the Board in writing within 15 business days of any change in status
of its Designated Consultant.
(8) A Designated Consultant
shall notify the Board in writing within 15 business days of any change in their
status as Designated Consultant.
Stat. Auth.: ORS 670.310(1) & 670.730(10)
Stats. Implemented: ORS
673.643 & 673.605 - 673.990
Hist.: TSE 8, f. & ef.
5-19-76; TSE 3-1980, f. & ef. 8-22-80; TSE 2-1982, f. & ef. 5-10-82; TSE
3-1982, f. & ef. 11-19-82; TSE 1-1985, f. & ef. 1-15-85; Renumbered from
800-020-0050; TSE 4-1989, f. & cert. ef. 12-20-89; TSE 11-1991, f. & cert.
ef. 10-28-91; TSE 10-1992, f. & cert. ef. 12-22-92; BTP 3-2005, f. 8-31-05,
cert. ef. 9-1-05; BTP 1-2006, f. & cert. ef. 9-5-06; BTP 2-2007, f. 1-12-07,
cert. ef. 2-1-07; BTP 1-2009, f. & cert. ef. 2-5-09; BTP 1-2010, f. 1-19-10,
cert. ef. 2-1-10; BTP 1-2014, f. 1-16-14, cert. ef. 2-1-14; BTP 1-2015, f. 1-16-15,
cert. ef. 2-1-15
800-025-0050
Management and Supervision of Tax Preparation Business
(1) Each principal and branch office must be under the management and supervision of a Licensed Tax Consultant. Supervision means:
(a) The direct and immediate control of the Licensed Tax Preparer by the Licensed Tax Consultant in such manner that the Licensed Tax Consultant is aware of the line of questioning and the reasoning applied by the Licensed Tax Preparer in the preparation of each return, and that the Licensed Tax Consultant has adequate opportunity to correct or add to the reasoning applied by the Licensed Tax Preparer; and
(b) A system of selecting, training and controlling the Licensed Tax Preparer, including having a set of procedures by which the Licensed Tax Consultant is assured that the Licensed Tax Preparer is providing competent workmanship and abiding by the statutes and Board rules. Such procedures shall include:
(A) An examination and review of all personal income tax returns for errors under the direct supervision of the Licensed Tax Consultant or a Licensed Tax Preparer chosen based on experience and reviewing ability; and
(B) Giving notice to the Licensed Tax Preparer of any adjustments after examination and review; and
(C) Maintaining in principal and branch offices current federal and state personal income tax reference material; and
(D) Providing access to the Licensed Tax Consultant (including telephone or electronic media access from branch offices) so that the Licensed Tax Preparer is encouraged to seek tax law consultation and advice; and
(E) Exercising control by the Licensed Tax Consultant over the tax preparation practices and all other matters governed by the statutes and Board rules in each principal and branch office.
(2) Licensed Tax Preparers who have not had at least 240 hours and one (1) year's tax return preparation experience during the previous three (3) year period must be under the immediate, onsite supervision of more experienced personnel when preparing, advising, or assisting in the preparation of tax returns.
(3) Licensed Tax Consultants who employ any person described in subsection (4) of ORS 673.610 to act in the capacity of Licensed Tax Preparer or Licensed Tax Consultant under their supervision shall report to the Board the names of these persons and the basis for their exemption from licensure.
(4) If a Licensed Tax Preparer is found by the Board to be in violation of the statutes or Board rules, the Licensed Tax Consultant responsible for supervision of that Licensed Tax Preparer shall be deemed to be in violation in the same manner and to the same extent, and may be disciplined by the Board regardless of any discipline imposed on the Licensed Tax Preparer, unless the Licensed Tax Consultant demonstrates to the satisfaction of the Board that the circumstances that led to the violation occurred without the permission or knowledge of the Licensed Tax Consultant and that the violation occurred regardless of an adequate system of supervision that would generally prevent such violation. In the case of a corporation, firm, or partnership, both the Designated Consultant and the corporation, firm, or partnership may be disciplined.
Stat. Auth.: ORS 673.730(5)

Stats. Implemented: ORS 673.615(2)

Hist.: TSE 1-1985, f. & ef. 1-15-85; TSE 2-1996, f. & cert. ef. 12-30-96; BTP 2-2007, f. 1-12-07, cert. ef. 2-1-07; BTP 1-2009, f. & cert. ef. 2-5-09; BTP 1-2010, f. 1-19-10, cert. ef. 2-1-10; BTP 1-2011, f. 1-24-11, cert. ef. 2-1-11
800-025-0060
Consultant in Residence
(1) A Licensed Tax Consultant shall
be in residence at each principal and branch office. "Tax consultant in residence"
means that a Licensed Tax Consultant is physically present to conduct and carry
out his/her duties in the principal or branch office for at least 50 percent of
the time an office is open to the public for tax preparation, assistance, and advice
during each week from January 1 to the federal filing deadline without extension
and during each month for the remainder of the year for year round offices in accordance
with OAR 800-025-0050.
(2) The Board may waive the
Licensed Tax Consultant in residence requirement of subsection (1) upon written
application, which details how the management and supervision of principal and branch
offices will effectively be accomplished.
(3) In granting or denying
a written application for waiver, the Board shall evaluate each case on an individual
basis, considering the following factors:
(a) Distance between offices
supervised by a Licensed Tax Consultant.
(b) Past compliance of waiver
applicants with ORS 673.605 to 673.735 and rules of the Board.
(c) Whether the policies
and procedures described in the application will result in effective management
and supervision of Licensed Tax Preparers in the absence of a Resident Consultant.
(d) Sickness or death of
a Licensed Tax Consultant; and
(e) Any other unusual or
unforeseen circumstances making such waiver necessary.
(4) Applicants shall apply
annually for waiver of the resident consultant rule. The application shall provide
all of the information described in guidelines established by the Board for applying
for waivers. Except in emergency circumstances resulting in undue hardship. Waiver
applications will not be accepted after January 31 for branch offices intended to
operate at any time during the period January 1 to the federal filing deadline without
extension of the same calendar year. Approved waivers shall expire on the expiration
date of the associated tax business registration or a date established by the Board.
(5) All applications must
be acted upon by the Board. Disapproval of an application by the Board may be appealed.
(6) The supervising Licensed
Tax Consultant of an office for which a waiver has been approved shall meet in person
with Licensed Tax Preparers in the office at least twice weekly to review the work
of each Licensed Tax Preparer and respond to questions.
(7) A tax preparation business
shall notify the Board in writing within 15 business days of any change in status
of its Resident Consultant.
(8) A Resident Consultant
shall notify the Board in writing within 15 business days of any change in their
status as Resident Consultant.
Stat. Auth.: ORS 670.310(1) & 670.730(10)
Stats. Implemented: ORS
673.643 & 673.605 - 673.990
Hist.: TSE 1-1985, f. &
ef. 1-15-85; TSE 5-1986, f. & ef. 10-6-86; TSE 6-1987, f. & ef. 10-2-87;
TSE 3-1988, f. & cert. ef. 8-26-88; TSE 5-1995, f. & cert. ef. 5-5-95; TSE
2-1996, f. & cert. ef. 12-30-96; BTSE 1-2001, f. & cert. ef. 4-19-01; BTP
3-2005, f. 8-31-05, cert. ef. 9-1-05; BTP 2-2007, f. 1-12-07, cert. ef. 2-1-07;
BTP 1-2008, f. 1-14-08, cert. ef. 2-1-08; BTP 1-2009, f. & cert. ef. 2-5-09;
BTP 1-2011, f. 1-24-11, cert. ef. 2-1-11; BTP 1-2014, f. 1-16-14, cert. ef. 2-1-14;
BTP 1-2015, f. 1-16-15, cert. ef. 2-1-15
800-025-0070
Keeping of Records
(1) If a Licensed Tax Consultant is
employed by another Licensed Tax Consultant, the records shall be kept by the employing
Licensed Tax Consultant.
(2) If the Licensed Tax Consultant
who has been designated as responsible for the tax return preparation activities
and decisions of the corporation, firm, or partnership, ceases to be connected with
the corporation, firm, or partnership, the records shall be retained by the corporation,
firm, or partnership.
(3) The records of the returns
shall be kept for a period of not less than four (4) years after the date of the
preparation, advice, or assistance.
Stat. Auth.: ORS 670.310(1) & 670.730(10)
Stats. Implemented: ORS 673.643
& 673.605 - 673.990
Hist.: TSE 8, f. & ef.
5-19-76; TSE 1-1985, f. & ef. 1-15-85; Renumbered from 800-020-0070; BTP 2-2007,
f. 1-12-07, cert. ef. 2-1-07; BTP 1-2008, f. 1-14-08, cert. ef. 2-1-08; BTP 1-2009,
f. & cert. ef. 2-5-09; BTP 1-2015, f. 1-16-15, cert. ef. 2-1-15

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