[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR]

[Page 424-425]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.6107-1  Income tax return preparer must furnish copy of return 
to taxpayer and must retain a copy or record.

    (a) Furnishing copy to taxpayer. The person who is an income tax 
return preparer of any return of tax under subtitle A of the Internal 
Revenue Code of 1954 or claim for refund of tax under subtitle A of the 
Internal Revenue Code of 1954 shall furnish a completed copy of the 
original return or claim for refund to the taxpayer (or nontaxable 
entity) not later than the time the original return or claim for refund 
is presented for the signature of the taxpayer (or nontaxable entity). 
The preparer may, if it wishes request a receipt or other evidence from 
the taxpayer (or nontaxable entity) sufficient to show satisfaction of 
the requirement of this paragraph (a).
    (b) Copy or record to be retained. The person who is an income tax 
return preparer of any return or claim for refund shall:
    (1)(i) Retain a completed copy of the return or claim for refund; or
    (ii) Retain a record, by list, card file, or otherwise of the name, 
taxpayer identification number, and taxable year of the taxpayer (or 
nontaxable entity) for whom the return or claim for refund was prepared 
and the type of return of claim for refund prepared;
    (2) Retain a record, by retention of a copy of the return or claim 
for refund, maintenance of a list or card file, or otherwise, for each 
return or claim for refund presented to the taxpayer (or nontaxable 
entity) of the name of the individual preparer required to sign the 
return or claim for refund pursuant to Sec.  1.6695-1(b); and
    (3) Make the copy or record of returns and claims for refund and 
record of the individuals required to sign available for inspection upon 
request by the district director.

The material described in this paragraph (b) shall be retained and kept 
available for inspection for the 3-year period following the close of 
the return

[[Page 425]]

period during which the return or claim for refund was presented for 
signature to the taxpayer (or nontaxable entity). However, in the case 
of a return which becomes due (with extensions, if any) during a return 
period following the return period during which the return was presented 
for signature, the material shall be retained and kept available for 
inspection or the 3-year period following the close of the later return 
period in which the return became due. For the definition of ``return 
period'' see section 6060(c). If the person subject to the record 
retention requirement of this paragraph (b) is a corporation or a 
partnership which is dissolved before completion of the 3-year period, 
then all persons who under state law are responsible for the winding up 
of the affairs of the corporation or partnership shall be subject, on 
behalf of the corporation or partnership, to these record retention 
requirements until completion of the 3-year period. If state law does 
not specify any person or persons as responsible for winding up, then, 
collectively, the directors or general partners shall be subject, on 
behalf of the corporation or partnership, to the record retention 
requirements of this paragraph (b). For purposes of the penalty imposed 
by section 6695(d), such designated persons shall be deemed to be the 
income tax return preparer and will be jointly and severally liable for 
each failure.
    (c) Preparer. For the definition of ``income tax return preparer'', 
see section 7701(a)(36) and Sec.  3071.7701-15. For purposes of applying 
this section, in the case of:
    (1) An employment arrangement between two or more income tax return 
preparers, the person who employs (or engages) one or more other 
preparers to prepare for compensation any return or claim for refund 
other than for the person shall be considered to be the sole income tax 
return preparer; and
    (2) A partnership arrangement for the preparation of returns and 
claims for refund, the partnership shall be considered to be the sole 
income tax return preparer.
    (d) Penalties. (1) For the civil penalty for failure to furnish a 
copy of the return or claim for refund to the taxpayers (or nontaxable 
entity) as required under paragraphs (a) and (c) of this section, see 
section 6695(a) and Sec.  1.6695-(a).
    (2) For the civil penalty for failure to retain a copy of the return 
or claim for refund, or to retain a record as required under paragraphs 
(b) and (c) of this section, see section 6695(d) and Sec.  1.6695-1(d).


(Sec. 6060(b), Internal Revenue Code of 1954 (90 Stat. 1691, (26 U.S.C. 
6060(b))); sec. 7805, Internal Revenue Code of 1954 (68A Stat. 917, (26 
U.S.C. 7805))

[T.D. 7519, 42 FR 59967, Nov. 23, 1977, as amended by T.D. 7640, 44 FR 
49452, Aug. 23, 1979; T.D. 7948, 49 FR 8601, Mar. 8, 1984]