2023 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.