DRS NOW ACCEPTING ONLINE PERMIT APPLICATIONS FOR TAX PREPARERS/FACILITATORS

Next phase of state practice standards requires registration as of January 1, 2019

Beginning January 1, 2019, certain tax preparers and facilitators of refund anticipation loans and refund anticipation checks cannot engage in the business of, solicit business as, present themselves as tax preparers or facilitators, or provide tax preparation or facilitator services for Connecticut income tax returns, without a permit issued by the Connecticut Department of Revenue Services (DRS).

Permit applications for those seeking to provide tax preparation services in such settings will now be accepted - online only - through the State of Connecticut eLicense web portal at https://www.elicense.ct.gov/.

The permit requirement was part of a series of 2017 legislative reforms designed to protect taxpayers from unfair business practices and establish qualifications for paid income tax preparers. Certain professions, such as accountants, attorneys, and enrolled agents, are exempt from the requirement (see Special Notice below).

In tax year 2017, more than 1.12 million individual state tax returns were filed with a preparer ID number.

To apply and obtain a permit, an individual must meet certain basic requirements, including having an IRS preparer tax identification number (PTIN) and evidence of experience, education, or training in tax preparation services. The initial permit application fee is $100.00 and is valid for a period of two years from the date of application. DRS will notify applicants of permit approval by e-mail.

DRS has issued Special Notice 2018(8), Permit Requirements for Tax Preparers and Facilitators, which includes additional guidance.