10-005 Code Vt. R. 10-060-005-X - CONFIDENTIAL PREPARATION OF RETURNS

Section 1.5901 CONFIDENTIAL PREPARATION OF RETURNS

(a) 32 V.S.A. Sections 5901-5903 are effective for returns or declarations filed on or after July 1, 1972.

(b) The written declaration referred to in 32 V.S.A. § 5901(a) shall be made pursuant to the form prescribed by the commissioner on the Vermont returns of tax imposed by Chapter 151 of Title 32, Vermont Statutes Annotated, or declarations thereof. On and after July 1, 1972, in the event that the above mentioned forms do not contain said declaration, the following declaration (printed, typed or written) shall be attached to said forms:

"I declare, under the penalties of perjury, that under 32 V.S.A. § 5901 information supplied to me by the taxpayer has not been and will not be used for any purpose other than for the preparation of this return, or made available to another person or persons for any purpose, unless (1) a separate valid consent form, as prescribed by 32 V.S.A. § 5901(b), is signed by the taxpayer and retained by me, or (2) the regulations of the commissioner so permit."

(c) The consent required by Section 5901(a)(2) shall be retained by the preparer of the return to which it relates of a period of three years from the date on which the return to which it relates is due or is filed, whichever is later. One consent may be used both for more than one return or declaration. A consent will contain the following information and be kept in such a place as to be readily available for review by any authorized agent of the Vermont Department of Taxes:

(1) The name of the tax return preparer,

(2) The name of the taxpayer,

(3) The specific purpose for which the consent is being signed,

(4) The date on which such consent is signed,

(5) A statement that the tax return information may not be used by the tax return preparer for any purpose other than that stated in the consent, and

(6) A statement by the taxpayer that he consents to the use of such information for the specific purpose described in subparagraph (3) of this paragraph.

(d) The prohibition contained in Section 5901(a)(1) shall apply for the tax year to which it relates and all subsequent years.

(e) The content required by Section 5901(a) (2) shall apply only to the tax year to which if specifically relates.

(f) The tax return preparer must sign the declaration personally and not use a stamp or firm name.

(g) The term "tax return information" means any information, including but not limited to a taxpayer's name, address, and social security number, furnished for, or in connection with, the preparation of a tax return of any taxpayer and which is furnished by the taxpayer to a tax return preparer or by the tax return preparer to any other person. Information furnished by taxpayer includes information which is furnished on behalf of the taxpayer, such as information furnished by a guardian for a minor, by a duly authorized agent for his principal, by a fiduciary for an estate or trust, by an officer, receiver, trustee in bankruptcy, or assignee for a corporation, or pursuant to a duly executed power of attorney.

(h)

(1) A tax return preparer who is lawfully engaged in the practice of law may disclose or use the tax return information of a taxpayer who is a client for, or in connection with, the rendering of legal services to such taxpayer, such as estate planning, preparation of trial briefs, or other services authorized or required by the taxpayer.

(2) A tax return preparer who is an accountant and prepares books of account, working papers, accounting, statements or reports, or performs other services for a taxpayer may disclose or use the tax return information of such taxpayer for, or in connection with, the prepartion of such books, papers, statements, or reports, or the performance of such other services authorized or required by the taxpayer.

(i)

(1) A tax return preparer may disclose or use any information which is identical to any tax return information which has been furnished to him if such identical information was obtained otherwise than in connection with the preparation of a tax return.

(2) A tax return preparer may retain tax return information of a taxpayer, including copies of tax returns or data processing tapes prepared on the basis of such tax return information, and may use such information in connection with an audit by the State of Vermont or the Internal Revenue Service of any tax return.

(3) Any tax return preparer may compile and maintain a separate list containing the names and address of taxpayers whose tax returns he has prepared or processed. This list may be used by the compiler solely to contact the taxpayers on the list for the purpose of offering future tax return preparation or processing services to such taxpayers. The compiler of the list may not transfer the taxpayer list, or any part thereof, to any other person unless such transfer takes place in conjunction with the sale or other disposition of the tax return preparation business of such compiler. A person who acquires a taxpayer list, or a part thereof, in conjunction with such a sale or other disposition shall be subject to the provisions of this paragraph with respect to such list as if he had been the compiler of such list. All consents filed with the seller of such list shall expire.

(j)

(1) Information received by a tax return preparer from the taxpayer for the purpose of preparing returns of tax imposed by Chapter 151 of Title 32, Vermont Statutes Annotated, or declaration thereof, may be used by that preparer for the purpose of preparing federal tax returns and declarations without first obtaining a consent prescribed in 32 V.S.A. § 5901(a)(2).

(2) In filing returns for other states, information given by the taxpayer to the tax return preparer for the purpose of preparing returns or declartion, which information may be required to be disclosed by the taxing authorities of the other state, may be so disclosed without first obtaining consent prescribed in 32 V.S.A. § 5901(a)(2). For instance, the preparation of a New Hampshire commuter's tax return may require documentary support by way of a copy of the Vermont State Income Tax Return; such Vermont return may be submitted to New Hampshire taxing authorities without first obtaining a consent.

Notes

10-005 Code Vt. R. 10-060-005-X

Adopted: March 15, 1973
Effective Date: March 30, 1973