Paid Tax Preparer E-mail Registration Reminder
The Connecticut Department of Revenue Services (DRS) recently e-mailed certain tax preparers with a reminder about Connecticut’s paid preparer statute (see e-mail below).
The notification was sent to tax preparers whom the DRS believes may be required to register as paid preparers in compliance with legislation passed by the General Assembly in 2017. The list of recipients was derived from information received from the Internal Revenue Service (IRS).
NOTE: If you received an e-mail from DRS and you are either an exempt preparer or you no longer prepare federal and Connecticut income tax returns for Connecticut taxpayers, please disregard the notice. DRS does recommend you visit the IRS website to update your information, if necessary.
Dear Tax Professional:
You are receiving this e-mail because the Connecticut Department of Revenue Services (DRS) has identified you as someone who may have a responsibility to register with DRS as a paid tax preparer.
This e-mail includes information for you to determine if you are subject to this statutory requirement.
Why we are sending you this notice
Effective January 1, 2019, tax preparers who prepare more than 10 federal or state individual tax returns for Connecticut taxpayers for a fee or other compensation are required to register and obtain a permit from DRS.
Our records indicate you prepared more than 10 federal or state individual tax returns for Connecticut taxpayers for tax year 2018. However, you have not registered as a non-exempt tax preparer with DRS.
Steps for you to take
Review Special Notice 2017(8), Requirements for Income Tax Preparers and Facilitators of Refund Anticipation Loans or Checks, and Special Notice 2019(4), Permit Requirements for Tax Preparers and Facilitators.
Go to the DRS website at https://portal.ct.gov/DRS/TSC/Paid-Preparers/Preparers to determine if you are a non-exempt tax preparer. The interactive pages will guide you through the registration process. If you are not required to register, or if you have already registered with DRS, no further action is required.
Steps DRS is taking
DRS will continue to monitor submitted tax returns for compliance with the preparer registration requirements. If you are providing tax preparation services for a fee or other compensation without a permit, you may be subject to a civil penalty of $100 for each day that you prepare tax returns without a permit. If you work for a business providing tax preparation services and you are required to register, the business may be subject to a civil penalty of $500 per violation.