Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Electronic Filing topic
No spam. Unsubscribe anytime.
Committee approves HB 10-31 to require electronic filing by tax practitioners with waiver authority for hardship
Summary
HB 10-31 would require tax practitioners who file a taxpayer's federal return electronically to also file the state return electronically, with DFA authorized to waive the requirement for undue hardship; the committee passed the bill as amended and sponsors said rules are being drafted.
Sponsor presented HB 10-31 to require electronic filing of state income tax returns by tax practitioners when the taxpayer's federal return is filed electronically. The sponsor clarified the requirement applies to professional preparers (businesses, partnerships, LLCs, corporations) preparing returns for hire, not to individuals using commercial tax software. DFA would have authority to waive the requirement if the department determines the rule would cause undue hardship for a practitioner.
Senators asked about moving the 'tax practitioner' definition into the definitional section and whether that would produce unintended consequences; DFA staff said moving the definition makes it apply broadly across the chapter and should avoid duplication. Committee members asked when draft rules implementing the waiver process would be ready; DFA said draft income tax rules, including the waiver process, were being prepared with a target near the end of 2021. The sponsor said the bill would take effect for tax years beginning 01/01/2020 (i.e., filings in 2022), which the sponsor said would give time to address rule issues.
The committee adopted the amendment adding a cosponsor and passed HB 10-31 as amended by voice vote.
