# COMAR Title 09 — Maryland Department of Labor

## Subtitle 38 — State Board of Individual Tax Preparers

### Chapter 01 — General Regulations

**Authority:** Business Occupations and Professions Article, §§21-101, 21-203, 21-205, 21-207, and 21-301—21-304,Annotated Code of Maryland; Ch. 623, §6, Acts of 2008

**Administrative History:** Effective date:

**Administrative History:** Regulations .01—.04 adopted as an emergency provision effective February 25, 2011 (38:7 Md. R. 428); adopted permanently effective August 8, 2011 (38:16 Md. R. 944)

**Administrative History:** Regulation .01A amended effective March 5, 2012 (39:4 Md. R. 336); November 23, 2015 (42:23 Md. R. 1433)

**Administrative History:** Regulation .02 amended effective March 5, 2012 (39:4 Md. R. 336); November 23, 2015 (42:23 Md. R. 1433)

**Administrative History:** Regulation .03 repealed effective November 23, 2015 (42:23 Md. R. 1433)

**Administrative History:** Regulation .05 adopted effective March 5, 2012 (39:4 Md. R. 336)

**Administrative History:** Regulation .05E amended effective January 28, 2019 (46:2 Md. R. 52)

#### Regulation .01 The Board.

*COMAR 09.38.01.01*

A. In this chapter, the following terms have the meanings indicated.

  (1) “Board” means the State Board of Individual Tax Preparers.

  (2) “Client” means a person for whom an individual tax preparer performs individual tax preparation services.

  (3) “Examination” means the Maryland Registered Tax Preparer Examination given by the Board.

B. The Board shall hold an annual meeting in July of each year or at such other time as the members of the Board may vote upon, for the purpose of electing officers. Monthly meetings may be held on dates mutually convenient to the members of the Board. Special meetings shall be held, after reasonable notice, at the call of the Chairperson or any two Board members. Notice of all meetings and hearings shall be published in the Maryland Register.

C. The Chairperson shall preside at all meetings and shall perform such duties as the Board may direct. At any meeting at which the Chairperson is absent, the Vice-Chairperson shall act in the Chairperson’s place.

#### Regulation .02 The Examination.

*COMAR 09.38.01.02*

A. The passing score for the Examination is 70 percent.

B. After December 31, 2015, an individual shall pass the Examination given by the Board in order to qualify for a registration unless the individual meets the requirements of §D of this regulation.

C. An individual who has passed the Registered Tax Return Preparer Examination given by the Internal Revenue Service from November 1, 2011, through January 18, 2013, shall be considered to have passed an examination equivalent to that given by the Board.

D. Waiver of Examination. The Board shall grant a waiver of the examination requirement to any individual who:

  (1) Submits an application on the form the Board provides;

  (2) Pays the registration fee set by the Board;

  (3) Has obtained 15 consecutive years of individual tax preparation experience;

  (4) Has completed 8 hours of annual continuing education; and

  (5) Is in good standing with:

    (a) The Internal Revenue Service;

    (b) The Maryland Department of Labor;

    (c) The Office of the Comptroller; and

    (d) The Office of the Attorney General.

E. Qualifying Experience.

  (1) In order to meet the requirements of §D(3) of this regulation, an applicant shall have completed:

    (a) An average of 50 individual tax returns per year; and

    (b) No fewer than 25 individual tax returns per year.

  (2) Both paid and unpaid individual tax preparation services may qualify under this section.

  (3) Documentation. An applicant may document the experience required under this section through any of the following:

    (a) Employer certification;

    (b) Client certification; or

    (c) Copies of completed individual tax returns.

F. Continuing Education. Qualifying continuing education programs shall comply with the requirements set forth in COMAR .09.38.02.03.

G. Reporting and Controls.

  (1) An applicant for waiver of the examination shall certify under penalty of perjury that the applicant meets the requirements set forth in §D of this regulation.

  (2) The Board at its discretion may verify the information and documentation supporting an application for waiver of examination.

  (3) An applicant shall comply with a request by the Board for additional documentation in support of an application for waiver of examination.

#### Regulation .03 Federal Registration — Repealed.

*COMAR 09.38.01.03*

#### Regulation .04 Fees.

*COMAR 09.38.01.04*

Fees charged by the Board are as follows:

A. Registration fee — $100;

B. Renewal fee — $100;

C. Reinstatement of expired registration fee — $120.

#### Regulation .05 Code of Professional Conduct.

*COMAR 09.38.01.05*

A. Responsibilities and Practices.

  (1) An individual tax preparer may not commit any act that reflects adversely on the individual tax preparer’s fitness to provide individual tax preparation services.

  (2) An individual tax preparer may not permit others to perform acts on the individual tax preparer’s behalf, either with or without compensation, which, if performed by the individual tax preparer, would constitute a violation of the Code of Professional Conduct.

  (3) An individual tax preparer may not knowingly misrepresent facts while providing individual tax preparation services. An individual tax preparer may resolve doubt in favor of a client if there is reasonable support for the position.

  (4) An individual tax preparer who finds that a client has made an error or omitted information or related material required on an income tax return shall promptly advise the client of such error or omission.

  (5) An individual tax preparer may not permit a client's individual income tax refund check to be made payable to the individual preparer.

B. Client records.

  (1) An individual tax preparer shall provide, make available, or return to a client or former client, upon written request and within a reasonable time:

    (a) A copy of the client’s tax return;

    (b) Personal papers or source material in the manner furnished by the client; and

    (c) A copy of any depreciation schedule associated with a client’s tax return.

  (2) An individual tax preparer may charge a fee in connection with the requirements of §B(1) of this regulation.

C. Contingent Fees. An individual tax preparer may not provide individual tax preparation services under an arrangement where the fee is contingent upon the findings or result of the services rendered.

D. Conflict of Interest.

  (1) An individual tax preparer shall notify a client or potential client of any conflict of interest known to the individual tax preparer.

  (2) An individual tax preparer with a conflicting interest to a client may not represent the client without the client's express written consent.

E. Communications with the Board.

  (1) Failure to Respond.

    (a) If an applicant or individual tax preparer receives from the Board a written communication requesting a response, the applicant or individual tax preparer shall respond in writing within 30 days of the date of mailing.

    (b) The Board shall send a written communication by first-class mail to the last address furnished to the Board by the applicant or individual tax preparer.

    (c) Failure to respond as required by this subsection may be considered by the Board to be a violation of Business Occupations and Professions Article, §21-311(a)(5), Annotated Code of Maryland.

  (2) An applicant or individual tax preparer shall notify the Board in writing within 15 days after any change in the applicant’s or individual tax preparer’s:

    (a) Business address;

    (b) Home address;

    (c) Business telephone number;

    (d) Home telephone number; or

    (e) E-mail address.

F. Competence and Technical Standards.

  (1) An individual tax preparer shall provide individual tax preparation services in accordance with applicable professional standards.

  (2) An individual tax preparer may not provide individual tax preparation services to a client if the individual tax preparer cannot reasonably expect to perform the services in accordance with applicable professional standards.

G. Advertising and Solicitation.

  (1) An individual tax preparer may not solicit clients by the use of coercion, duress, compulsion, intimidation, threats, overreaching, or vexatious or harassing conduct.

  (2) An individual tax preparer may not use or participate in the use of any form of communication having reference to the individual tax preparer’s services that contains a false, fraudulent, misleading, deceptive, or unfair statement or claim.

  (3) A false, fraudulent, misleading, deceptive, or unfair statement or claim includes but is not limited to a statement or claim which:

    (a) Contains a misrepresentation of fact;

    (b) Is likely to mislead or deceive because it fails to make full disclosure of relevant facts;

    (c) Is intended or likely to create false or unjustified expectations of favorable results;

    (d) Implies educational or professional attainments or other recognition not supported in fact;

    (e) Represents that professional services can or will be competently performed for a stated fee when this is not the case, or makes representations with respect to fees for professional services that do not disclose all variables that reasonably may be expected to affect the fees that will in fact be charged; or

    (f) Contains other representations or implications that in reasonable probability will cause those of ordinary prudence to misunderstand or be deceived.

### Chapter 02 — Continuing Education

**Authority:** Business Occupations and Professions Article, §§21-205, 21-308 and 21-309, Annotated Code of Maryland

**Administrative History:** Effective date: March 5, 2012 (39:4 Md. R. 336

#### Regulation .01 Citation of Regulations, Applicability, and Purpose.

*COMAR 09.38.02.01*

A. These regulations may be cited and referred to as the “Individual Tax Preparers Continuing Education Regulations”. The continuing education requirement applies to all persons registered under Business Occupations and Professions Article, Annotated Code of Maryland, to provide individual tax preparation services in this State.

B. The public interest requires that individual tax preparers provide competent service to the public. The General Assembly has determined that it is in the public interest to require individual tax preparers to comply with the continuing education requirements as a prerequisite to the renewal of a registration.

#### Regulation .02 Basic Requirement.

*COMAR 09.38.02.02*

A. A renewal applicant shall complete at least 16 hours of qualifying continuing education for each 2-year registration term.

B. A minimum of 4 hours of the continuing education for each 2-year registration term shall be in Maryland tax-related subjects.

C. The Board may accept continuing education hours approved by the Internal Revenue Service.

D. Continuing education hours earned in excess of the 16 hours for a 2-year registration term shall not be credited towards the continuing education requirement for a subsequent 2-year registration term.

#### Regulation .03 Programs Which Qualify.

*COMAR 09.38.02.03*

A. The overriding consideration in determining whether a specific program qualifies is that it shall be a formal program of learning which contributes directly to the professional competence of the individual.

B. Group Continuing Education Programs.

  (1) Group continuing education programs will qualify only if §A of this regulation is met and:

    (a) An outline is prepared in advance and preserved for review by the Board, if required;

    (b) The program is at least 1 hour (50-minute instruction period) in length;

    (c) The program is conducted by a qualified instructor;

    (d) A record of attendance is preserved; and

    (e) The sponsor agrees to admit a member of the Board on request to monitor the program.

  (2) These programs include:

    (a) Professional development programs of recognized national and state tax preparation organizations;

    (b) Technical sessions at meetings of recognized national and state tax preparation organizations;

    (c) Noncredit short courses at universities and colleges;

    (d) Formal, organized, in-firm education programs; and

    (e) Programs offered by other recognized professional or industrial organizations.

C. University and college courses taken for academic credit will qualify only if §A of this regulation is met. Credit towards the continuing education requirement will be calculated at 15 hours for each semester hour credit and 10 hours for each quarter hour credit.

D. Other Programs. A program other than a group program will qualify only if:

  (1) The program meets the requirements of §A of this regulation;

  (2) An outline is prepared in advance and preserved for review by the Board, if required;

  (3) The program is at least 1 hour (50-minute instruction period) in length; and

  (4) The program provides evidence of satisfactory completion.

E. Teacher, Lecturer, or Discussion Leader.

  (1) Services as a teacher, lecturer, or discussion leader in subjects qualifying for continuing education credit will be included to the extent that it contributes to the applicant’s professional competence. Repetitious presentation, that is, those that are substantially the same subject material, may be included only once each reporting period.

  (2) A teacher, lecturer, or discussion leader of a qualifying continuing education program shall receive:

    (a) 3 hours of continuing education credit for every hour of presentation for a first-time presentation of a program; and

    (b) 1 hour of continuing education credit for every hour of presentation for all subsequent presentations of a program.

F. Subject Matter. The following general subject matter areas are acceptable to the extent that they contribute directly to the expertise of individual income tax preparation:

  (1) Taxation;

  (2) Practitioner ethics;

  (3) Accounting and payroll theory;

  (4) Estate, tax, or investment planning;

  (5) Computer technology; and

  (6) Others, if the applicant can demonstrate a direct relationship between the course and individual income tax preparation.

G. Documentation. The following minimum information concerning each continuing education course shall be maintained by the renewal applicant for 4 years from the date of renewal:

  (1) Sponsoring organization;

  (2) Course location;

  (3) Program title;

  (4) Topical course outline;

  (5) Content description;

  (6) Dates attended;

  (7) Hours claimed; and

  (8) Information reflecting the expertise of the instructor in the subject matter.

#### Regulation .04 Controls and Reporting.

*COMAR 09.38.02.04*

A. A renewal applicant shall provide a certification of compliance with renewal requirements, under Business Occupations and Professions Article, §§21-308 and 21-309, Annotated Code of Maryland, under penalty of perjury, in an appropriate form specified by the Board.

B. The Board, at its discretion, may verify the information and documentation supporting a renewal applicant’s certification of continuing education credit. Upon request, the renewal applicant shall submit to the Board, or its designee, copies of the original documentation supporting the certification provided under §A of this regulation.

#### Regulation .05 Exceptions.

*COMAR 09.38.02.05*

The Board may issue a registration to a renewal applicant who has not fully complied with the continuing education requirements in cases when failure by the applicant to fulfill this requirement has been caused by reason of any of the following:

A. Health as certified by a medical doctor;

B. Military service on extended active duty with the armed forces of the United States; or

C. Other good and valid causes, as determined and approved by the Board.