Ohio § 5703.263

§ 5703.263.

(A)(1) “ Tax return preparer ” means any person other than an accountant or an attorney that operates a business

that prepares, or directly or indirectly employs another person to prepare, for a

taxpayer a tax return or application for refund in exchange for compensation or remuneration

from the taxpayer or the taxpayer's related member.  The preparation of a substantial portion of a tax return or application for refund

shall be considered to be the same as the preparation of the return or application

for refund.  “Tax return preparer” does not include an individual who performs only one or more

of the following activities: (a) Furnishes typing, reproducing, or other mechanical assistance; (b) Prepares an application for refund or a return on behalf of an employer by whom the

individual is regularly and continuously employed, or on behalf of an officer or employee

of that employer; (c) Prepares as a fiduciary an application for refund or a return; (d) Prepares an application for refund or a return for a taxpayer in response to a notice

of deficiency issued to the taxpayer or the taxpayer's related member, or in response

to a waiver of restriction after the commencement of an audit of the taxpayer or the

taxpayer's related member. (2) “Related member” has the same meaning as in section 5733.042 of the Revised Code . (3) “ Accountant ” means any of the following: (a) An individual who holds both a CPA certificate and an Ohio permit or Ohio registration

issued by the accountancy board under section 4701.10 of the Revised Code ; (b) An individual who holds a foreign certificate; (c) An individual who is employed by a public accounting firm with respect to any return

prepared under the supervision of an individual described in division (A)(3)(a) or

(b) of this section, regardless of whether the public accounting firm is required

to register with the accountancy board under section 4701.04 of the Revised Code . (4) “CPA certificate” and “foreign certificate” have the same meanings as in section 4701.01 of the Revised Code . (5) “ Attorney ” means an individual who has been admitted to the bar by order of the supreme court

in compliance with its prescribed and published rules, is permitted to practice as

an attorney and counselor at law in this state under Chapter 4705. of the Revised

Code, and is not currently suspended or removed from such practice under that chapter. (6) A tax return preparer engages in “prohibited conduct” if the preparer does any of

the following: (a) Prepares any return or application for refund that includes an understatement of

a taxpayer's tax liability due to an unreasonable position or due to willful or reckless

conduct.  For the purposes of this division, “unreasonable position” and “willful or reckless

conduct” have the meanings as used in section 6694 of the Internal Revenue Code . (b) When required under any provision of Title LVII of the Revised Code, the preparer

fails to do any of the following: (i) Provide copies of a return or application for refund; (ii) Provide the preparer's signature or federal preparer tax identification number on

a return or application for refund; (iii) Retain copies of the preparer's records; (iv) Provide any information or documents requested by the tax commissioner; (v) Act diligently in determining a taxpayer's eligibility for tax credits, deductions,

or exemptions. (c) Negotiates a check or other negotiable instrument issued to a taxpayer by the department

of taxation without the permission of the taxpayer; (d) Engages in any conduct subject to criminal penalties under Title LVII of the Revised

Code; (e) Misrepresents the preparer's eligibility to file returns or applications for refund

on behalf of taxpayers, or otherwise misrepresents the preparer's experience or education; (f) Guarantees the payment of any tax refund or the allowance of any tax credit, deduction,

or exemption; (g) Engages in any other fraudulent or deceptive conduct that substantially interferes

with the proper administration of any provision of Title LVII of the Revised Code. (7) “ State ” means a state of the United States, the District of Columbia, the commonwealth of

Puerto Rico, or any territory or possession of the United States. (B) When a tax return preparer engages in prohibited conduct, the commissioner, may do

either or both of the following: (1) If the commissioner has previously warned the tax return preparer in writing of the

consequences of continuing to engage in prohibited conduct, impose a penalty not exceeding

one hundred dollars per instance of prohibited conduct; (2) Regardless of whether the commissioner has previously warned the tax return preparer,

request that the attorney general apply to a court of competent jurisdiction for an

injunction to restrain the preparer from further engaging in the prohibited conduct.  The court may take either of the following actions: (a) If the court finds that injunctive relief is appropriate to prevent the recurrence

of the prohibited conduct, the court shall issue an injunction against the preparer

enjoining the preparer from engaging in such conduct. (b) If the court finds that the preparer has continually or repeatedly engaged in prohibited

conduct, and that enjoining the preparer solely from engaging in such conduct would

not be sufficient to prevent the preparer's interference with the proper administration

of any provision of Title LVII of the Revised Code, the court may issue an injunction

against the preparer enjoining the preparer from acting as a tax return preparer in

this state. If a tax return preparer has been enjoined from preparing tax returns or applications

for refunds by a federal court or by another state court in the five years preceding

the date on which an injunction is requested under this section, that prior injunction

shall be sufficient to establish a prima facie case for the issuance of an injunction

under division (B)(2) of this section. (C) The commissioner may require a tax return preparer to include the preparer's name

and federal preparer tax identification number when filing any return or application

for refund.  If a tax return preparer fails to include this information when required to do so

by the commissioner, or if the information provided is false, inaccurate, or incomplete,

the commissioner may impose a penalty of fifty dollars for each such failure, provided

that the maximum penalty imposed on a preparer under this division in a calendar year

shall not exceed twenty-five thousand dollars. (D) The penalties imposed under divisions (B)(1) and (C) of this section may be assessed

and collected in the same manner as assessments made under Chapter 3769., 4305., 5727.,

5728., 5733., 5735., 5736., 5739., 5743., 5745., 5747., 5749., 5751., or 5753., section 718.90 , or sections 3734.90 to 3734.9014 of the Revised Code .  The commissioner may abate all or a portion of any penalty imposed under this section

upon the showing of good cause by the tax return preparer.