Statement of Issue:

Comments submitted by the Taxpayer Advocacy Panel (TAP) in response to temporary regulations and the notice of proposed rulemaking issued on April 24, 2003, relating to a paid income tax preparer's obligation to retain and furnish copies of income tax returns and claims for refund

Proposal:

TAP endorses upgrading current record-keeping requirements under Code section 6107(b) to allow electronic storage. TAP requested the regulations, applicable forms, instructions, or guidance clarify whether certain forms must continue to be maintained on paper due to signature requirements. Examples might include (1) EITC verification forms, and (2) for electronically filed returns, forms requiring a signature on both federal and state returns. Other than these forms, TAP recommends that preparers be allowed to choose to maintain taxpayer data on electronic media, with the ability to recreate the tax return.

Response Notes:

General acknowledgement that comments were received from Chief Counsel, Department of Treasury