H.B. 190 Enrolled

INDIVIDUAL INCOME TAX - ELECTRONIC
FILING REQUIREMENTS
2005 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephen D. Clark
Senate Sponsor: Curtis S. Bramble

LONG TITLE
General Description:
This bill modifies the Individual Income Tax Act relating to filing returns.
Highlighted Provisions:
This bill:
. defines terms;
. requires an income tax return preparer to file returns required to be filed under the
Individual Income Tax Act using scan technology or by electronic means under
certain circumstances;
. provides exceptions to the requirement to file returns using scan technology or by
electronic means; and
. grants rulemaking authority to the State Tax Commission.
Monies Appropriated in this Bill:
None
Other Special Clauses:
This bill has retrospective operation to January 1, 2005.
Utah Code Sections Affected:
ENACTS:
59-10-514.1, Utah Code Annotated 1953

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-10-514.1 is enacted to read:

59-10-514.1. Definitions -- Requirement to file returns using scan technology or by
electronic means -- Exceptions -- Waiver.
(1) As used in this section:
(a) (i) "electronic" means using a technology other than scan technology; and
(ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules defining "technology";
(b) (i) except as provided in Subsection (1)(b)(ii), "income tax return preparer" means an
individual that prepares for compensation a return required to be filed by this chapter;
(ii) notwithstanding Subsection (1)(b)(i), "income tax return preparer" does not include
an individual who:
(A) performs only one or more of the following relating to a return required to be filed by
this chapter:
(I) types the return;
(II) reproduces the return; or
(III) performs an action similar to Subsection (1)(b)(ii)(A)(I) or (II) as determined by the
commission by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative
Rulemaking Act; or
(B) prepares a return required to be filed by this chapter:
(I) of the individual's employer or an officer or employee of the employer if the
individual is regularly and continuously employed by that employer;
(II) of any person if that individual is a fiduciary for that person; or
(III) for a taxpayer in response to a tax order issued to that taxpayer;
(c) "prepare" means to prepare a substantial portion or more of a return required to be
filed by this chapter;
(d) (i) except as provided in Subsection (1)(d)(ii), "qualifying return" means a return
required to be filed by this chapter for any taxable year that begins on or after the January 1
described in Subsection (2)(c)(i); and
(ii) notwithstanding Subsection (1)(d)(i), "qualifying return" does not include:

(A) an amended return; or
(B) (I) a return filed for any taxable year that begins before the first day of the current
taxable year; and
(II) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules defining "current taxable year"; and
(e) (i) "scan technology" means technology that:
(A) allows a return to be scanned; and
(B) is approved by the commission; and
(ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may by rule specify what types of technology constitute scan technology.
(2) (a) Subject to Subsections (2)(b) and (c) and except as provided in Subsection (3), an
income tax return preparer shall file all qualifying returns using scan technology or by electronic
means if the income tax return preparer prepares in any calendar year beginning on or after
January 1, 2005, a total of 101 or more returns required to be filed by this chapter.
(b) (i) For purposes of Subsection (2)(a), if two or more income tax return preparers are
affiliated with the same establishment, the total number of returns required to be filed by this
chapter that are prepared in a calendar year beginning on or after January 1, 2005, by all of the
income tax return preparers that are affiliated with that establishment shall be included in
determining whether an income tax return preparer prepares in a calendar year beginning on or
after January 1, 2005, a total of 101 or more returns required to be filed by this chapter.
(ii) For purposes of Subsection (2)(b)(i), in accordance with Title 63, Chapter 46a, Utah
Administrative Rulemaking Act, the commission may by rule determine the circumstances under
which two or more income tax return preparers are affiliated with the same establishment.
(c) If an income tax return preparer is required by this Subsection (2) to file all qualifying
returns using scan technology or by electronic means, the income tax return preparer shall file
those qualifying returns using scan technology or by electronic means:
(i) beginning on January 1 of the first calendar year immediately following the day on
which the income tax return preparer meets the requirements of this Subsection (2); and

(ii) for all calendar years after the calendar year described in Subsection (2)(c)(i).
(3) Notwithstanding Subsection (2), an income tax return preparer is not required to file a
qualifying return using scan technology or by electronic means if:
(a) a schedule required to be attached to the qualifying return cannot be filed using scan
technology or by electronic means;
(b) the taxpayer for which the qualifying return is prepared requests in writing that the
income tax return preparer not file the qualifying return using scan technology or by electronic
means; or
(c) subject to Subsection (4), the commission waives for one or more qualifying returns
filed by the income tax return preparer the requirement imposed by this section to file the
qualifying returns using scan technology or by electronic means.
(4) (a) For purposes of Subsection (3)(c), the commission may waive for one or more
qualifying returns filed by an income tax return preparer the requirement imposed by this section
to file the qualifying returns using scan technology or by electronic means if the income tax
return preparer demonstrates to the commission that it would be an undue hardship to file the
qualifying returns using scan technology or by electronic means.
(b) For purposes of Subsection (4)(a) and in accordance with Title 63, Chapter 46a, Utah
Administrative Rulemaking Act, the commission shall by rule define the circumstances that
constitute an undue hardship to file a qualifying return using scan technology or by electronic
means.
Section 2. Retrospective operation.
This bill has retrospective operation to January 1, 2005.