MANDATORY E-FILING IN CALIFORNIA
AB 1756 AMENDED BILL TEXT
SEC. 56.
Section 18621.9 is added to the Revenue and Taxation Code, to read:
18621.9. (a) If an income tax return preparer prepared more than
100 timely original individual income tax returns that were filed
during any calendar year that began on and after January 1, 2003, and
if in the current calendar year that income tax preparer prepares
one or more acceptable individual income tax returns using tax
preparation software, then, for that calendar year and for each
subsequent calendar year thereafter, all acceptable individual income
tax returns prepared by that income tax preparer shall be filed
using electronic technology, as defined in Section 18621.5.
(b) For purposes of this section:
(1) "Income tax preparer" means a person that meets both of the following:
(A) Any person that prepares, in exchange for compensation, or who
employs another person to prepare, in exchange for compensation, any
return for the tax imposed by Part 10 (commencing with Section
17001) (hereafter Part 10). A person that only performs those acts
described in clauses (i) through (iv) of Section 7701(a)(36)(B) of
the Internal Revenue Code, with respect to the preparation of a
return for the tax imposed by Part 10, is not an income tax preparer
for purposes of this section or for purposes of Section 19170.
(B) Any person that prepares returns for the tax imposed by Part
10 that is also required, by this article, to include an
identification number on any return prepared by that tax preparer for
the tax imposed by Part 10.
(2) "Original individual income tax return" means any return that
is required, by Section 18501, to be made with respect to the tax imposed by Part 10.
For purposes of subdivision (a), a "timely" original individual tax return means
any original individual tax return that is filed, without regard to extensions,
during the calendar year for which that tax return is required to be filed.
(3) "Acceptable individual income tax return" means any original
individual tax return that is authorized by the Franchise Tax Board
to be filed using electronic technology, as defined in Section
18621.5. For purposes of this section, Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code does not apply to any rule, notice, or guideline issued by the
Franchise Tax Board that identifies a tax return as an acceptable
individual income tax return.
(4) "Tax preparation software" means any computer software program
intended for accounting, tax return preparation, or tax compliance.
(c) Subdivision (a) shall cease to apply to an income tax preparer
if, during the previous calendar year, that income tax preparer
prepared no more than 25 original individual income tax returns.
(d) (1) This section applies to acceptable individual income tax
returns required to be filed for taxable years beginning on and after
January 1, 2004.
(2) This section may not be interpreted to require electronic
filing of acceptable individual income tax returns that are required
to be filed on or before January 1, 2004.
SEC. 57. Section 19170 is added to the Revenue and Taxation Code, to read:
19170. (a) An income tax preparer that is subject to Section
18621.9 is liable for a penalty in the amount of fifty dollars ($50)
for each acceptable individual income tax return prepared by that
income tax preparer that is not electronically filed, unless it is
shown that the failure to electronically file that acceptable
individual income tax return is due to reasonable cause and not due
to willful neglect.
(b) For purposes of this section, reasonable cause includes, but
is not limited to, a taxpayer's election not to electronically file
an acceptable individual income tax return in compliance with Section
18621.9.