essing return information between an electronic 
return originator (or the taxpayer in the case of 
online filing) and a transmitter. 
‘‘(E) TRANSMITTER.—The term ‘trans-
mitter’ includes a person who sends the elec-
tronic return data directly to the Internal Rev-
enue Service. 
‘‘(2) REFUND DELIVERY PRODUCT.—The term 
‘refund delivery product’ includes a refund loan and 
any other product sold to a taxpayer for a fee or any 
other thing of value for the purpose of receiving the 
taxpayer’s anticipated federal tax refund. 
‘‘(3) REFUND LOAN.—The term ‘refund loan’ 
includes any loan of money or any other thing of 
value to a taxpayer in connection with the taxpayer’s 
anticipated receipt of a Federal tax refund. Such 
term includes a loan secured by the tax refund or an 
arrangement to repay a loan from the tax refund. 
‘‘(g) REGULATIONS.— 
‘‘(1) IN
GENERAL.—The Secretary may pre-
scribe such regulations as necessary to carry out this 
subchapter. 
‘‘(2) BURDEN OF REGISTRATION.—In promul-
gating such regulations, the Secretary shall minimize 
the burden and cost on the registrant.’’. 
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(b) PUBLIC AWARENESS CAMPAIGN.—The Secretary 
of the Treasury shall conduct a public information and 
consumer education campaign, utilizing paid advertising, 
to educate the public on making sound financial decisions 
with respect to refund delivery products (as defined by sec-
tion 7530 of the Internal Revenue Code of 1986), includ-
ing— 
(1) the need to compare the rates and fees of 
refund loans with the rates and fees of conventional 
loans, 
(2) the need to compare the amount of money 
received under a refund delivery product after taking 
into consideration such costs and fees with the total 
amount of the refund, and 
(3) where and how taxpayers may lodge com-
plaints 
concerning 
refund 
delivery 
product 
facilitators. 
(c) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 7530. Refund delivery products.’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
this section shall take effect on the date of the en-
actment of the Act. 
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(2) REGULATIONS.—The regulations required 
by section 7530(g) of the Internal Revenue Code of 
1986 shall be prescribed not later than 2 years after 
the date of the enactment of this Act. 
(3) FULL IMPLEMENTATION.—The Secretary of 
the Treasury, taking into consideration the com-
plexity and magnitude of the requirements set forth 
under this Act, may delay full implementation of the 
regulations promulgated under such section not later 
than 5 years after the enactment of this Act. 
SEC. 204. PREPARER PENALTIES WITH RESPECT TO PREPA-
RATION OF RETURNS AND OTHER SUBMIS-
SIONS. 
(a) INCLUSION OF OTHER SUBMISSIONS IN PENALTY 
PROVISIONS.— 
(1) UNDERSTATEMENT OF TAXPAYER’S LIABIL-
ITY.— 
(A) IN GENERAL.—Section 6694 (relating 
to understatement of taxpayer’s liability by tax 
return preparer) is amended by striking ‘‘return 
or claim of refund’’ each place it appears and 
inserting ‘‘return, claim of refund, or other sub-
mission’’. 
(B) CONFORMING AMENDMENTS.—Section 
6694, as amended by paragraph (1), is amend-
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ed by striking ‘‘return or claim’’ each place it 
appears and inserting ‘‘return, claim, or other 
submission’’. 
(2) OTHER ASSESSABLE PENALTIES.— 
(A) IN GENERAL.—Section 6695 (relating 
to other assessable penalties with respect to the 
preparation of tax returns for other persons) is 
amended by striking ‘‘return or claim of re-
fund’’ each place it appears and inserting ‘‘re-
turn, claim of refund, or other submission’’. 
(B) CONFORMING AMENDMENTS.—Section 
6695, as amended by paragraph (1), is amend-
ed by striking ‘‘return or claim’’ each place it 
appears and inserting ‘‘return, claim, or other 
submission’’. 
(b) INCREASE IN CERTAIN OTHER ASSESSABLE PEN-
ALTY AMOUNTS.— 
(1) IN GENERAL.—Subsections (a), (b), and (c) 
of section 6695 (relating to other assessable pen-
alties with respect to the preparation of income tax 
returns for other persons) are each amended by 
striking ‘‘$50’’ and inserting ‘‘$1,000’’. 
(2) REMOVAL OF ANNUAL LIMITATION.—Sub-
sections (a), (b), and (c) of section 6695 are each 
amended by striking the last sentence thereof. 
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