STAND. COM. REP. NO. 1691

Honolulu, Hawaii

, 2021

RE: S.B. No. 320

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 320, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX RETURN PREPARERS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require tax return preparers to have a valid preparer tax identification number for claims and returns prepared for compensation submitted to the State;

(2) Require tax return preparers to include the valid preparer tax identification number on any return or claim for refund prepared for compensation as required by the Department of Taxation;

(3) Beginning with calendar year 2022, establish a continuing education requirement of four hours per calendar year for tax return preparers; and

(4) Require the Board of Public Accountancy to adopt rules regarding continuing education, including compliance procedures and penalties for violations.

Your Committee received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, and Hawaii Association of Public Accountants.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 320, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair