Delaware Code Title 30 Sec. 549 – Suit to enjoin certain paid tax preparers
(a) In a court of competent jurisdiction, the Director of Revenue may commence suit to enjoin any paid tax preparer, as that term is defined under § 502(b) of this title, from further engaging in any conduct described in subsection (b) of this section or from further acting as a paid tax preparer. If the court issues an injunction under this section, the paid tax preparer shall reimburse the Division of Revenue for all costs and fees incurred in prosecuting such case.
Terms Used In Delaware Code Title 30 Sec. 549
- Director: means the Director of the Division of Revenue or the Secretary of Finance of the State. See Delaware Code Title 30 Sec. 502
- Division of Revenue: means the Division of Revenue of the Department of Finance of the State. See Delaware Code Title 30 Sec. 502
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Paid tax preparer: means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return or claim for refund, or a substantial portion of any return or claim for refund under this Title. See Delaware Code Title 30 Sec. 502
- Person: means and includes an individual, a trust, estate, partnership, association, company or corporation. See Delaware Code Title 30 Sec. 502
- State: means a state of the United States, the District of Columbia, Puerto Rico, The United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Delaware Code Title 30 Sec. 502
- Tax: shall be deemed also to refer to license fees imposed under Part III of this title. See Delaware Code Title 30 Sec. 502
- United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302
(b) In any action under subsection (a) of this section, the court may enjoin the tax preparer from further engaging in any conduct specified in this subsection if the court finds that injunctive relief is appropriate to prevent the recurrence of this conduct. The court may issue an injunction when the paid tax preparer has done any of the following:
(1) Prepared any return or claim for refund that includes an understatement of a taxpayer’s liability due to an unreasonable position.
(2) Prepared any return or claim for refund that includes an understatement of a taxpayer’s liability due to wilful or reckless conduct.
(3) Where required, failed to do any of the following:
a. Furnish a copy of a return or claim for refund.
b. Sign a return or claim for refund.
c. Furnish an identifying number.
d. Retain a copy of records.
e. File correct information returns.
f. Determine eligibility for tax benefits.
(4) Negotiated a check issued to a taxpayer by the Division of Revenue without the permission of the taxpayer.
(5) Engaged in any conduct subject to any criminal penalty provided in this title.
(6) Misrepresented the paid tax preparer’s eligibility to practice before the Division of Revenue or otherwise misrepresented the paid tax preparer’s experience or education.
(7) Guaranteed the payment of any tax refund or the allowance of any tax credit.
(8) Engaged in any other fraudulent or deceptive conduct that substantially interferes with the proper administration of the tax laws of this State.
(c) If the court finds that a paid tax preparer has continually or repeatedly engaged in any conduct prohibited in subsection (b) of this section and that an injunction prohibiting the conduct would not be sufficient to prevent the person‘s interference with the proper administration of the tax laws of Delaware, the court may enjoin the person from acting as a paid tax preparer in Delaware. The fact that a person has been enjoined from preparing tax returns or claims for refund for the United States or any other state, in the 5 years preceding the petition for an injunction shall establish a prima facie case for an injunction to be issued pursuant to this section.