NY Gen Bus L § 372 (2021)
2021 New York Laws GBS - General Business Article 24-C - Tax Preparers 372 - Consumer Bill of Rights Regarding Tax Preparers.

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