Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
Practice defined.
The term "practice" comprehends all matters connected with the
presentation by an attorney, accountant, agent, or preparer to the Department
of Revenue or any of its employees, of a client's rights, privileges, or
liabilities under a law administered by the commissioner as defined in
Minnesota Statutes, section
270C.01, subdivision
5, and the rules thereunder. "Practice" includes the preparation and filing of
necessary documents, correspondence with and communication to the Department of
Revenue, and the representation of a client at conferences, hearings, and
meetings. However, the preparation and signing of a tax return, the appearance
of an individual as a witness for a taxpayer, and the furnishing of information
at the request of the Department of Revenue or any of its employees do not, of
and by themselves, constitute practice before the department, unless these acts
are coupled with the presentation of a client's case at conferences, hearings,
or meetings. For purposes of this rule, the term "practice" is synonymous with
"representation," and the term "state tax" is synonymous with a tax or fee
imposed by a "law administered by the commissioner."
Subp. 2.
Scope of representation
pursuant to power of attorney.
When authorized by the taxpayer through a written power of
attorney, an attorney, accountant, agent, or preparer may appear as the
taxpayer's representative, without the taxpayer, before an employee of the
Department of Revenue with respect to the tax liability of the taxpayer for the
type of tax and taxable year or period authorized in the power of attorney. A
written power of attorney is not required if the taxpayer is present. For
purposes of this part, "written power of attorney" means the signed original or
a copy of the signed original of any of the following:
A. the power of attorney form designed and
printed by the Department of Revenue;
B. an Internal Revenue Service power of
attorney if it is modified to include state taxes;
C. a power of attorney under Minnesota
Statutes, chapter 523, if it is filled out to include tax matters or generally
to include all matters; or
D. any
other document which has all the necessary legal elements for creating a power
of attorney and is broad enough to include tax matters or generally to include
all matters.
For purposes of this part, a power of attorney grants authority
to deal with any return as defined in Minnesota Statutes, section
270C.01, subdivision
8.
For taxes which are classified as private data on individuals
or nonpublic data not on individuals, a taxpayer representative may inspect
only those state records, files, or documents which are:
(a) specifically listed in;
(b) directly or indirectly connected with
matters specifically listed in; or
(c) covered by the terms of, a power of
attorney. The signed power of attorney form may be transmitted to the
Department of Revenue by facsimile or by electronic transmission as an imaged
attachment in a format that cannot be altered.
If the taxpayer is not present, a person presenting a power of
attorney shall present identification satisfactory to the department
employee.
Subp.
3.
Persons ineligible to practice.
A person shall be ineligible to appear as a taxpayer
representative under this part, if the person is:
A. barred or suspended from practice before
the Department of Revenue;
B. an
employee of the Department of Revenue;
C. barred or suspended from practice as an
attorney or certified public accountant in the state of Minnesota;
D. barred or suspended from practice before
the Internal Revenue Service; or
E.
a former employee of the Department of Revenue, to the extent provided in
Minnesota Statutes, section
270C.10.
However, with regard to items C and D, a granting of
reinstatement to practice as an attorney or certified public accountant, or a
granting of reinstatement to practice before the Internal Revenue Service shall
automatically reinstate a person's eligibility to practice before the
Department of Revenue if the person is not otherwise ineligible under item A,
B, or E.
Subp.
4.
Standards of ethics and conduct.
No attorney, accountant, agent, or preparer acting as a
taxpayer representative shall neglect or refuse to submit records or
information in any matter before the Department of Revenue, upon proper and
lawful request by a duly authorized employee of the Department of Revenue,
unless the taxpayer representative has a good faith belief that the information
or testimony is privileged. No taxpayer representative shall interfere, or
attempt to interfere, with any proper and lawful efforts by the Department of
Revenue or its employees to obtain information relative to any matter before
the Department of Revenue. Insisting upon a subpoena shall not be a violation
of this subpart.
Each taxpayer representative shall exercise due diligence in
regard to all of the following:
A.
preparing, assisting in the preparation of, approving, and filing returns,
documents, affidavits, and any other papers relating to Department of Revenue
matters to the extent of participation;
B. determining the correctness of
representations made to the Department of Revenue; and
C. determining the correctness of
representations made to clients with reference to any matter administered by
the Department of Revenue.
Each taxpayer representative shall exercise good faith in
determining the correctness of representations made by clients to the
representative with reference to any matter administered by the Department of
Revenue when the preparer or agent has reasonable grounds to believe the
client's representations are false or inaccurate.
No taxpayer representative shall unreasonably delay the prompt
disposition of any matter before the Department of Revenue.
Where there is a conflict between this part and a code of
conduct which is promulgated by another agency or branch of government, that
code of conduct shall control. The taxpayer representative must disclose to the
department that there is a conflict.
Subp. 5.
Incompetent conduct.
Incompetent conduct, for which any attorney, accountant, agent,
or preparer may be barred or suspended from practice before the Department of
Revenue, means the failure by an attorney, accountant, agent, or preparer,
after due warning has been given by the commissioner of revenue pursuant to
part
8052.0400, subpart
3, to:
A. demonstrate the familiarity with the state
tax statutes, rules, and forms necessary to enable the practitioner to properly
apply, discuss, or complete them, and thus to render adequate services in
connection with a taxpayer's case before the Department of Revenue;
or
B. exercise due diligence as
required in subpart
4, second paragraph. The
standard used for determining failure to exercise due diligence shall be the
common law standard of reasonableness used in determining negligence.
Subp. 6.
Disreputable
conduct.
Disreputable conduct, for which any attorney, accountant,
agent, or preparer may be barred or suspended from practice before the
Department of Revenue, includes any conduct that violates subpart
4. In addition, the following
acts or events constitute disreputable conduct:
A. Conviction of any criminal offense under a
state or federal tax statute, or conviction of any crime involving dishonesty
or breach of trust.
B. Preparing or
filing for oneself or another a false or fraudulent state tax return or other
statement on which state taxes or a refund thereof may be based, knowing it is
false or fraudulent.
C. Willful
failure to prepare or file a state tax return for oneself or another in
violation of the applicable tax statutes or rules.
D. Willful failure to prepare and file an
amended state tax return for oneself, knowing that a material error or omission
was made on the original return.
E.
Willful failure to recommend to a client that an amended state tax return be
prepared and filed, knowing that a material error or omission was made on the
original return.
F. Advising a
client or a prospective client to adopt a state tax evasion plan which is not
legal, knowing that the plan is not legal.
G. Giving false testimony or information in
any proceeding before the Department of Revenue, or before any tribunal
authorized to pass upon state tax matters, knowing it is false.
H. Filing any false or fraudulently altered
document, affidavit, or power of attorney in any case or other proceeding
before the Department of Revenue, or procuring the filing thereof, knowing it
is false or fraudulently altered.
I. Using, with intent to deceive, false
representations to procure employment in any case or proceeding before the
Department of Revenue, including, but not limited to:
(1) misrepresentations regarding eligibility
to practice before the Department of Revenue;
(2) specific material misrepresentations
regarding experience or education, whether general or specialized, as a state
tax return preparer;
(3)
guaranteeing the payment of any tax refund or the allowance of any tax credit;
or
(4) representing to a client
that the attorney, accountant, agent, or preparer can improperly obtain special
consideration or action from the Department of Revenue or an employee thereof,
or that he or she has improper access to sources of information within the
Department of Revenue which are otherwise private, confidential, or
nonpublic.
J. Approving
for filing, or advising or aiding in the preparation of, a false or fraudulent
state tax return prepared by some other person, knowing the return is false or
fraudulent.
K. Misappropriation of,
or failure to properly and promptly remit, funds received from a client for the
purpose of paying taxes or other obligations due the state of
Minnesota.
L. Endorsement or
negotiation of a client's check in payment of a refund of any tax, credit,
penalty, or interest administered by the commissioner of revenue, without the
client's prior endorsement. The preceding sentence shall not apply when the
full amount of the check is deposited in the taxpayer's bank account for the
benefit of the taxpayer.
M.
Charging a client a fee based upon a percentage of the refund that the client
is eligible to receive from the state of Minnesota, unless representation of
the client reaches the contested stage, either in a formal administrative
hearing or a court proceeding.
N.
Attempting to influence, or offering or agreeing to attempt to influence, the
official action of any employee of the Department of Revenue by the use of
threats, false accusations, duress, or coercion, by the offer of any special
inducement or promise of advantage, or by the bestowing of any gift, favor, or
thing of value.
O. In connection
with practice before the Department of Revenue, making false accusations or
statements knowing them to be false, or circulating or publishing slanderous or
libelous matter concerning the Department of Revenue or any of its
employees.
P. Knowingly aiding and
abetting another person to practice before the Department of Revenue during a
period that the other person is barred or suspended from practice.
Q. For purposes of items A to P, the phrases
"state tax" and "state tax return" include all matters referred to in subpart
2, second
paragraph.
Statutory Authority: MS s 270.06;
270C.06;
270C.44;
290.52
