OAR 800-010-0015: Definitions

As used in these rules, unless the context requires otherwise: (1) "Board" means the State Board of Tax Practitioners. (2) "Branch Office" means an office or other place of business where clients would normally or usually contact a licensee. (3) "Client" means a person for whom a licensee performs or agrees to perform professional services for valuable consideration and the services are related directly or indirectly to the client's personal income taxes. (4) "Competence" means preparation in compliance with state and federal tax codes. If a preparer does not have experience in the application of a section of the tax code but must use that section of the tax code to correctly answer a tax question, then the preparer must engage in research sufficient to gain competence in the previously unfamiliar section of the tax code such that the preparer may competently answer the pending tax question. If the preparer, after engaging in the above research, is still not sufficiently experienced, so as to competently answer the pending tax question, then the preparer must, as required pursuant to OAR 800-010-0017(1), seek the assistance of a person who is competent in the preparation of tax questions from that section of the tax code. The standard to which tax preparers will be held is: (a) Was the preparer specifically knowledgeable about the fields of taxation in which they practiced, (b) Did the preparer perform the required techniques for the matter undertaken with skill, (c) Did the preparer identify the issues beyond their competence relevant to the matter undertaken, (d) Did the preparer seek and secure appropriate education or supervision to ensure accuracy in the positions taken in the matter if engagement on the matter continued, and (e) Did the preparer properly prepare and carry through to the end the matter undertaken. (5) "Confidential Information" means information furnished to a licensee for, or in connection with, the preparation of an income tax return. (6) "Designated Consultant" (DC) means a Licensed Tax Consultant assigned by an Oregon State Registered Tax Preparation Business as the person responsible for overseeing all Oregon tax preparation activities of the business at a specific Oregon State Registered Tax Preparation Business location whether located inside or outside of the State of Oregon. A Designated Consultant's responsibilities include, but are not limited to, overarching supervision of the office infrastructure and the employees hired to engage in the preparation of Oregon personal income tax returns for another and for valuable consideration for the Oregon State Registered Tax Preparation Business location at which the Designated Consultant is assigned. The Designated Consultant and the designating business shall each be responsible for the business's compliance with the laws and rules of the Board. See also, OAR 800-025-0040. (7) "Experience" means having sufficient knowledge to know when to seek assistance from a preparer competent in the state or federal tax code. Any preparer, who has completed the Board approved eighty (80) hour tax preparer class, and who has also taken and passed the licensed tax preparer examination, is presumed to have sufficient experience to know when a matter is outside of their field of experience and their competence so as to require that they first seek assistance from a competent preparer in a section of the state or federal tax code with which they themselves are unfamiliar. Veteran tax preparers (whether licensed as LTPs or LTCs) who were grandfathered in nineteen-seventy-three (1973) are also presumed to have sufficient experience to know when a matter is outside of their field of experience and competence so as to require that they first seek assistance from a competent preparer in a section of the state or federal tax code with which they themselves are unfamiliar. (8) "Out-of-State unlicensed preparation of Oregon Personal Income Tax Returns for Oregon residents" means the preparation through solicitation, advertising or contract of Oregon Personal Income Tax Returns for Oregon residents by an out-of-state tax preparation business, its employees or contractors who receive Oregon Personal Income Tax Return information from Oregon residents using resources, including but not limited to, physical or electronic drop boxes, digital portals, or other means, when the out-of-state business(s), its employees or contractors are not exempt from licensure under ORS 673.610 and the preparation of Oregon Personal Income Tax Returns is not being supervised by an Oregon licensed Resident Tax Consultant. (9) "Out-of-state franchisee" means an unregistered franchisee of a multi-state tax preparation franchisor when the multistate franchisor normally conducts business in Oregon through registered Oregon franchises that employ or contract with Oregon licensed tax preparers and tax consultants to prepare Oregon residents' state or federal personal income tax returns. (10) “Preparing or Preparation of tax returns” as used in these rules means the gathering of necessary information including but not limited to information about the taxpayer’s personal identity, income, expenses, deductions, identifying forms, and the action or process of making ready for use or consideration the tax return. (11) “Tax Returns” for purposes of these rules means Oregon residents’ state or federal personal income tax returns. (12) "License" means proof of authorization issued by the Board to the effect that the licensee at the time of authorization was authorized to work in the tax preparation field for a set period of time as a Licensed Tax Consultant or Licensed Tax Preparer. (13) "Licensee" means any person holding a currently valid Oregon Board of Tax Practitioners license including any person, corporation, firm or partnership falling within the scope of ORS 673.605 to 673.735. (14) “Registered” or “Registrant” means a person who is registered as a Registered Tax Aide with the Board. (15) “Registered Tax Aide practice” means any service assisting in the preparation of tax returns as permitted under these rules that is performed by a Registered Tax Aide under the supervision of a Licensed Tax Consultant. (16) An Oregon licensed "Resident Consultant" (RC) means the Licensed Tax Consultant who must be physically or virtually (in real time) present in the office at least fifty percent (50%) of the time. Of that fifty percent (50%), at least fifty percent (50%) of the time must be spent physically present in the office during the time the principal or branch office is open to the public for tax preparation, assistance, and advice during each week from January first (1st) to the federal filing deadline without extension and during each month for the remainder of the year for year-round offices in accordance with OAR 800-025-0050. The Resident Consultant shall be available during that time to supervise, and answer tax questions posed by the other Licensed Tax Consultants and Licensed Tax Preparers employed at the Oregon State Registered Tax Preparation Business principal or branch office - whether located inside or outside of the State of Oregon - to which the Oregon Licensed Resident Consultant is assigned. (17) “Tax Consultant or Tax Preparer Practice” and a licensee's "professional practice" means any service performed or supervised by the licensee for a client, including any advice or recommendation made by the licensee to the client, when it is related directly or indirectly to the client's personal income tax return, whether or not the licensee also prepares the client's personal income tax returns. (18) "Oregon State Registered Tax Preparation Business" means a sole proprietorship, partnership, corporation or other entity, registered with the board - whether located inside or outside of the State of Oregon - that offers Oregon personal income tax preparation services, performed by active licensees, to the public, for valuable consideration, whether operated under an individual's own name or under an assumed business or corporate name, and including Oregon State Registered Tax Preparation Businesses operated on a full- or part-time basis. (19) “Valuable Consideration” as used in ORS 673.615 and OAR chapter 800, means a benefit that accrues to a person as a result of preparing, advising, or assisting in the preparation of personal income tax returns for others, or offering to perform such services. Valuable consideration need not be translatable into dollars and cents. (20) “Negligent” See OAR 800-010-0017(2). (21) “Incompetent” See OAR 800-010-0017(1).