§ 372 — Consumer bill of rights regarding tax preparers

§ 372. Consumer bill of rights regarding tax preparers. (a) A tax\npreparer shall provide his or her customers with a receipt containing an\naddress and phone number at which the preparer can be contacted\nthroughout the year.\n (b) The department shall, in accordance with regulations promulgated\nby the commissioner of taxation and finance, produce and make available\nto taxpayers and tax preparers an informational flier regarding\nconsumers' rights and laws concerning tax preparers to be called a\n"consumer bill of rights regarding tax preparers". The department shall\nconsult with the department of state, to enhance distribution of fliers\nto consumers. The flier shall also be made available on the department\nand the department of state's internet site, and shall contain\ninformation including, but not limited to, the following:\n (1) postings required by state and federal laws, such as price posting\nand posting of qualifications;\n (2) explanations of some of the commonly offered services and industry\njargon, such as preparation of short and long federal forms, refund,\nelectronic filing, express mail, direct deposit, refund anticipation\ncheck, refund anticipation loan, quick, instant, rapid, fast, fee, and\ninterest;\n (3) basic information on what a tax preparer is and is not required to\ndo for a consumer, such as the preparer's responsibility to sign a\nreturn, that a tax preparer may not be required to accompany a consumer\nto an audit but the company may have a voluntary policy to accompany\nconsumers to audits; and\n (4) the telephone numbers of the department for information and\ncomplaints.\n The flier shall be in a form which is easily reproducible by photocopy\nmachine.\n (c) The department shall coordinate its response to consumer tax\npreparer complaints with the department of state, as the department\ndeems appropriate.\n (d) A copy of the consumer bill of rights regarding tax preparers\nshall be provided to individuals or businesses on request to the\ndepartment, and shall be sent by the department no later than October\nfifteenth of each year to each tax preparer who has been found to be in\nviolation of this subdivision or any other provision of this section\nwithin the previous calendar year. Each tax preparer subject to this\nsection shall obtain a current consumer's bill of rights regarding tax\npreparers from the department and shall reproduce it so that it is clear\nand legible. As of January first of each year, each tax preparer shall\ngive to each customer, free of charge, a current, legible copy of the\nconsumer's bill of rights regarding tax preparers prior to any\ndiscussion with the customer. Each such tax preparer shall also verbally\ndirect the consumer to review the consumer bill of rights regarding tax\npreparers and shall answer any questions the consumer may have about its\ncontents.\n (e) (1) Any tax preparer who advertises the availability of a refund\nanticipation loan or refund anticipation check may not directly or\nindirectly represent such a loan as a refund. Any advertisement which\nmentions a refund anticipation loan must state conspicuously that it is\na loan and that a fee or interest will be charged by the lending\ninstitution. The advertisement must also disclose the name of the\nlending institution.\n (2) (i) Before any taxpayer enters into a refund anticipation loan,\nthe tax preparer facilitating such loan shall provide the following\ndisclosure to the taxpayer in writing in at least fourteen-point type:\n "YOU ARE NOT REQUIRED TO ENTER INTO THIS REFUND ANTICIPATION LOAN\nAGREEMENT MERELY BECAUSE YOU HAVE RECEIVED THIS INFORMATION.\n IF YOU DO SIGN A CONTRACT FOR A REFUND ANTICIPATION LOAN, YOU WILL BE\nTAKING OUT A LOAN. YOU WILL BE RESPONSIBLE FOR REPAYMENT OF THE ENTIRE\nLOAN AMOUNT AND ALL RELATED COSTS AND FEES, REGARDLESS OF HOW MUCH MONEY\nYOU ACTUALLY RECEIVE IN YOUR TAX REFUND. IF YOUR REFUND IS DELAYED, YOU\nMAY HAVE TO PAY ADDITIONAL COSTS.\n IF YOU DO NOT TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU ARE ELIGIBLE\nTO RECEIVE A GROSS TAX REFUND OF APPROXIMATELY $(insert amount).\n IF YOU DO TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU WILL BE\nRESPONSIBLE TO PAY $(insert amount) IN FEES FOR THE LOAN. AFTER THESE\nFEES ARE PAID, YOU WILL RECEIVE APPROXIMATELY $ (insert amount) AS YOUR\nLOAN.\n THE ESTIMATED ANNUAL PERCENTAGE RATE OF YOUR REFUND ANTICIPATION LOAN\nIS (insert amount)%. THIS IS BASED ON THE ACTUAL AMOUNT OF TIME YOU WILL\nBE LENT MONEY THROUGH THIS REFUND ANTICIPATION LOAN.\n IF YOU DO TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU CAN EXPECT TO\nRECEIVE YOUR LOAN WITHIN APPROXIMATELY TWO BUSINESS DAYS OF (insert\ndate).\n IF YOU DO NOT TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU CAN STILL\nRECEIVE YOUR TAX REFUND QUICKLY. IF YOU FILE YOUR TAX RETURN\nELECTRONICALLY AND RECEIVE YOUR TAX REFUND THROUGH THE MAIL, YOU CAN\nEXPECT TO RECEIVE YOUR REFUND WITHIN APPROXIMATELY TWO BUSINESS DAYS OF\n(insert date). IF YOU FILE YOUR TAX RETURN ELECTRONICALLY AND HAVE YOUR\nTAX REFUND DIRECTLY DEPOSITED INTO A BANK ACCOUNT, YOU CAN EXPECT TO\nRECEIVE YOUR REFUND WITHIN APPROXIMATELY TWO BUSINESS DAYS OF (insert\ndate)."\n (ii) Before any taxpayer enters into an agreement to receive a refund\nanticipation check, the tax preparer facilitating the agreement shall\nprovide the following disclosure to the taxpayer in writing in at least\nfourteen-point type:\n "YOU ARE NOT REQUIRED TO ENTER INTO THIS REFUND ANTICIPATION CHECK\nAGREEMENT MERELY BECAUSE YOU HAVE RECEIVED THIS INFORMATION. IF YOU DO\nTAKE OUT THIS REFUND ANTICIPATION CHECK, YOU WILL BE RESPONSIBLE TO PAY\n$(insert amount) IN FEES FOR THE CHECK TO BE ISSUED BY (insert name of\nissuer of refund anticipation check). YOU CAN AVOID THIS FEE AND STILL\nRECEIVE YOUR REFUND IN THE SAME AMOUNT OF TIME BY HAVING YOUR REFUND\nDIRECTLY DEPOSITED INTO YOUR OWN BANK ACCOUNT. YOU CAN ALSO WAIT FOR THE\nFEDERAL OR STATE REFUND TO BE MAILED TO YOU.\n IF YOU DO ENTER INTO THIS REFUND ANTICIPATION CHECK AGREEMENT, YOU CAN\nEXPECT TO RECEIVE YOUR CHECK BY APPROXIMATELY TWO BUSINESS DAYS OF\n(insert date).\n IF YOU DO NOT ENTER INTO THIS REFUND ANTICIPATION CHECK AGREEMENT, YOU\nCAN STILL RECEIVE YOUR TAX REFUND QUICKLY. IF YOU FILE YOUR TAX RETURN\nELECTRONICALLY AND RECEIVE YOUR TAX REFUND THROUGH THE MAIL, YOU CAN\nEXPECT TO RECEIVE YOUR REFUND WITHIN APPROXIMATELY TWO BUSINESS DAYS OF\n(insert date). IF YOU FILE YOUR TAX RETURN ELECTRONICALLY AND HAVE YOUR\nTAX REFUND DIRECTLY DEPOSITED INTO A BANK ACCOUNT, YOU CAN EXPECT TO\nRECEIVE YOUR REFUND WITHIN APPROXIMATELY TWO BUSINESS DAYS OF (insert\ndate)."\n (iii) It shall be the obligation of the tax preparer to complete the\nrequired disclosures accurately with all relevant information for each\ntaxpayer and to ensure that the completed disclosure form is signed by\nthe taxpayer before he or she enters into a refund anticipation loan or\na refund anticipation check, with a copy of the same provided to the\ntaxpayer. The name and the unique identification number of the tax\nreturn preparer (and facilitator, if different) assigned pursuant to\nsection thirty-two of the tax law must be included on the disclosure\nform provided to the taxpayer.\n (f)(1) If a taxpayer applies for a refund anticipation loan, the\nfacilitator must also orally inform the taxpayer in the language\nprimarily used for oral communications between the facilitator and\ntaxpayer:\n (i) that the product is a loan that only lasts one to two weeks;\n (ii) if the tax refund is less than expected, the taxpayer is liable\nfor the full amount of the loan and must repay any difference;\n (iii) if the refund is delayed for any reason, there may be additional\ncosts, such as additional interest, that the taxpayer will have to pay;\n (iv) the amount of the refund anticipation loan fee; and\n (v) the refund anticipation loan interest rate.\n (2) If a taxpayer applies for a refund anticipation check, the\nfacilitator must also orally inform the taxpayer in the language\nprimarily used for oral communications between the facilitator and\ntaxpayer:\n (i) the amount of the refund anticipation check fee; and\n (ii) that the taxpayer can receive a refund in the same amount of time\nwithout a fee if the tax return is filed electronically, and the\nconsumer chooses direct deposit to their own personal bank account.\n (g) Any person, partnership, corporation or other business entity who\nviolates any provision of this section or any of the regulations\npromulgated pursuant to this section shall be liable for a civil penalty\nof not less than two hundred fifty dollars nor more than five hundred\ndollars for the first violation and for each succeeding violation a\ncivil penalty of not less than five hundred dollars nor more than seven\nhundred fifty dollars. The penalties provided for by this subdivision\nmust be paid upon notice and demand and will be assessed, collected and\npaid in the same manner as taxes under article twenty-seven of the tax\nlaw.\n (h) Apart from subdivision (e) of this section and the accompanying\npenalties as listed in subdivision (f) of this section, the provisions\nof this section shall not apply to:\n (1) an officer or employee of a corporation or business enterprise\nwho, in his or her capacity as such, advises or assists in the\npreparation of income tax returns relating to such corporation or\nbusiness enterprise;\n (2) an attorney at law who advises or assists in the preparation of\nincome tax returns in the practice of law and the employees thereof;\n (3) a fiduciary and the employees thereof who advise or assist in the\npreparation of income tax returns on behalf of the fiduciary estate, the\ntestator, trustee, grantor or beneficiaries thereof;\n (4) a certified public accountant licensed pursuant to the education\nlaw or licensed by one or more of the states or jurisdictions of the\nUnited States, and the employees thereof;\n (5) a public accountant licensed pursuant to the education law and the\nemployees thereof;\n (6) an employee of a governmental unit, agency or instrumentality who\nadvises or assists in the preparation of income tax returns in the\nperformance of his or her official duties; or\n (7) an agent enrolled to practice before the internal revenue service\npursuant to section 10.4 of subpart A of part ten of title thirty-one of\nthe code of federal regulations.\n