5703-7-20 Electronic software providers; approval and suspension.

(A) For purposes of this rule, "electronic software provider" means any of the following:

(1) An electronic return originator (ERO);

(2) An intermediate service provider;

(3) A software developer;

(4) A transmitter;

(5) A vendor of tax return preparation software or other electronic software product used in the preparation of tax related forms; or

(6) Any other person reasonably determined by the commissioner to effectuate the electronic preparation of tax returns.

(B) In fulfillment of the authority and duties established under sections 5703.05, 5703.054, 5703.059 and 5747.082 of the Revised Code to authorize an electronic form of filing of any document required to be filed with the commissioner and to determine the acceptability of electronic technology, the commissioner may approve an electronic software provider for participation in the commissioner's electronic filing programs who substantially meets the following criteria:

(1) Files the electronic software provider letter of intent form or other submissions prescribed by the commissioner no later than November fifteenth of the year prior to the tax year for which the letter of intent is being filed;

(2) Provides evidence of approval as a registered vendor / accepted participant with the internal revenue service; and

(3) Passes electronic software tests prescribed by the commissioner no later than January thirty-first of the tax year for which the letter of intent is being filed. The commissioner shall post these tests on the department's website no later than December first of the year prior to the tax year for which the letter of intent is being filed.

(C) Once the commissioner approves an electronic software provider, the commissioner may rescind the approval for or suspend the electronic filing privilege of any electronic software provider who varies from the requirements, specifications, and procedures stated in this rule and (or) who has demonstrated poor business practices that could include the following:

(1) Poor software performance or quality;

(2) Unacceptable format quality of individual transmissions;

(3) Conviction of any criminal offense arising from a violation of the Ohio Revised Code or the laws of the United States relating to federal income taxes, or any offense involving dishonesty or breach of trust;

(4) Violation of any provision in Chapter 57. of the Revised Code relating to tax preparers;

(5) Failure to file timely and accurate tax returns, both business and personal;

(6) Failure to pay personal or business tax liabilities;

(7) Suspension or disbarment from practice before the internal revenue service;

(8) Unethical practices in return preparation;

(9) Material misrepresentation on an application;

(10) Violation of advertising standards, including those promulgated in Internal Revenue Service Publication 1345, last revised April 2014.

Effective: 1/10/2015
Five Year Review (FYR) Dates: 01/10/2020
Promulgated Under: 5703.14
Statutory Authority: 5703.05
Rule Amplifies: 5703.054, 5703.059, 5747.082