Oregon Statutes - Chapter 673 - Accountants; Tax Consultants and Preparers - Section 673.643 - Preparation of tax returns by corporation, firm or partnership; requirements; liability; prohibitions.

(1) A sole proprietorship, partnership, corporation or other legal entity, through individuals who are authorized within this state to render those services, may engage in the preparation, or in advising or assisting in the preparation of personal income tax returns for another and for valuable consideration and represent that it is so engaged if the entity:

(a) Registers annually with the State Board of Tax Practitioners in the manner prescribed by the board;

(b) Designates and reports in the manner prescribed by the board the authorized individual or individuals who are responsible for the tax return preparation activities and decisions of the entity; and

(c) Complies with ORS 673.605 to 673.740 and the rules adopted by the board.

(2) A sole proprietorship, partnership, corporation or other legal entity shall not be relieved of responsibility for the conduct or acts of its agents, employees or officers by reason of its compliance with subsection (1) of this section, nor shall a licensed tax consultant be relieved of responsibility for professional services performed by reason of employment by or relationship with such sole proprietorship, partnership, corporation or other legal entity.

(3) A sole proprietorship, partnership, corporation or other legal entity shall not engage in tax return preparation activities under subsection (1) of this section if the tax consultant, or the proprietor, a partner, a principal, an officer, director or manager, or a shareholder of the entity, is:

(a) An individual whose license as a tax consultant or tax preparer under ORS 673.605 to 673.740 is permanently revoked.

(b) An individual to whom the board has refused to issue or renew a license on the basis of dishonest conduct or conduct involving tax preparation.

(c) An individual whose occupational license, permit or registration has been revoked or refused by another state regulatory agency or the Internal Revenue Service for dishonest conduct or conduct involving tax preparation.

(d) A sole proprietorship, partnership, corporation or other legal entity prohibited from engaging in tax return preparation activities under subsection (1) of this section by reason of this subsection.

(4) The shareholders referred to in subsection (3) of this section are:

(a) If the corporation is publicly traded, a shareholder that owns more than 10 percent in value of the outstanding stock of the corporation.

(b) If the corporation is not publicly traded, any shareholder.

(5) For purposes of subsections (3) and (4) of this section, “publicly traded” means traded on an established securities market.

(6) If a sole proprietorship, partnership, corporation or other legal entity must sever a relationship in order that it may engage or may continue to engage in tax preparation activities in compliance with this section, the entity shall be allowed a reasonable time to sever the relationship. Except as provided under subsection (7) of this section, the time allowed to sever a relationship shall not exceed 180 days after the board gives notice that the severance is required. The notice shall include a statement affording an opportunity for hearing on the issue of severance. The notice and all proceedings conducted under this section shall be in accordance with ORS chapter 183.

(7) If a hearing is requested under subsection (6) of this section, or if an appeal is taken of the board’s order following hearing, the board or court may allow additional time for the affected parties to comply with any order requiring severance. [1975 c.464 §10; 1989 c.351 §1; 1991 c.138 §1]

Section:  Previous  673.610  673.615  673.625  673.630  673.635  673.637  673.640  673.643  673.645  673.650  673.651  673.655  673.660  673.663  673.665  Next

Last modified: August 7, 2008