42-1125.01. Civil penalties for return preparers, electronic filing and payment participants

A. If a return preparer or electronic return preparer fails to furnish a completed copy of any return, statement or other document to the taxpayer when the return, statement or other document is presented for the taxpayer’s signature, the return preparer shall pay a penalty of fifty dollars unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

B. If a return preparer or electronic return preparer fails to sign any return, statement or other document, the return preparer or electronic return preparer shall pay a penalty of fifty dollars unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer or electronic return preparer under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

C. If a return preparer or electronic return preparer fails to furnish the preparer's identifying number on any return, statement or other document, the return preparer or electronic return preparer shall pay a penalty of fifty dollars unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer or electronic return preparer under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

D. If a return preparer or electronic return preparer fails to retain a copy of any return, statement or other document for six years for transaction privilege and use tax returns and four years for all other returns, statements or other documents following the later of either the date on which the return, statement or other document was due to be filed with the department or was presented to the taxpayer for signature, the return preparer or electronic return preparer shall pay a penalty of fifty dollars unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer or electronic return preparer under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

E. If a return preparer or electronic return preparer fraudulently endorses or negotiates any check that is issued to a taxpayer, the return preparer or electronic return preparer shall pay a penalty of five hundred dollars.

F. An electronic return preparer or electronic return transmitter that fails to comply with any electronic filing program requirement shall pay a penalty of fifty dollars for each failure unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer, electronic return preparer or electronic return transmitter under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

G. The penalties provided in this section are in addition to other penalties provided by law.

H. All penalties are payable on notice and demand from the department.

I. This section applies to all taxes administered by the department.