Section 20-739
§ 20-739 Definitions. 1. For the purposes of this subchapter, the term
"tax preparer" or "preparer" means a person, partnership, corporation or
other business entity, that for valuable consideration advises or
assists or offers to advise or assist in the preparation of income tax
returns for another.
2. For the purposes of this subchapter, the term "refund anticipation
loan" means any loan a taxpayer may receive against his or her
anticipated income tax refund.
Section 20-740
§ 20-740 Disclosure. a. A tax preparer who is required, pursuant to
federal, state or local law or regulation, to sign income tax returns as
a preparer shall prominently and conspicuously post on the business
premises an identification and qualification statement. The statement
shall include, but is not limited to, the name of the tax preparer, an
address and phone number at which the tax preparer can be contacted
throughout the year, and a statement of any qualifications possessed by
the tax preparer, which may include a statement of satisfactory
completion of an educational or training program in income tax law,
theory or practice by the preparer.
b. The tax preparer shall provide the customer with a receipt
containing an address and phone number at which the preparer can be
contacted throughout the year.
Section 20-740.1
§ 20-740.1 Consumer bill of rights regarding tax preparers. a. No
later than the fifteenth of October of each year, the department shall
produce and publish in the city record a one page informational flier
regarding consumers' rights and laws concerning tax preparers to be
called a "consumer bill of rights regarding tax preparers". The flier
shall be in a form which is easily reproducible by photocopy machine and
shall contain information including, but not limited to, the following:
1. Postings required by local, state and federal laws, such as price
posting, posting of qualifications, and any licenses and permits
required for the operation of the business; and
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
loan, "quick," "instant," "rapid," "fast," fee, and interest; and
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; and
5. A statement that the consumer has the right to receive the
following information from the tax preparer prior to becoming obligated
to compensate such tax preparer for services rendered in connection with
filing such consumer's income tax return with the appropriate
governmental agencies:
(a) A written list of the refund and tax preparation services offered
by the tax preparer;
(b) A written estimate of the total costs to the consumer for each
refund and tax preparation service offered by the tax preparer. Such an
estimate shall include basic filing fees, interest rates, refund
anticipation loan processing fees, and any other related fees or
charges;
(c) A written interest rate estimation for a refund anticipation loan
or any other loan services offered by the tax preparer; and
(d) For each refund and tax preparation service offered by the tax
preparer, a written estimate of the period of time the consumer can
reasonably expect to wait for his or her tax refund.
b. The department shall publicize the availability of the flier. The
department shall provide a copy of the consumer bill of rights regarding
tax preparers to any requesting individuals or businesses within
fourteen days of such a request and shall, no later than November 1 of
each year, send the consumer bill of rights regarding tax preparers to
each tax preparer who has been found to be in violation of this
subchapter or any other provision of this chapter within the previous
calendar year. In addition, each tax preparer subject to this subchapter
shall obtain a current consumer bill of rights regarding tax preparers
from the department and shall reproduce it so that it is clear and
legible. As of January 1 of each year, each such tax preparer shall give
to each consumer, free of charge, a current, legible copy of the
consumer bill of rights regarding tax preparers prior to any discussion
with the consumer. 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.
Section 20-741
§ 20-741 Records. No tax preparer shall intentionally misstate or
misrepresent any information relating to his or her education, training
or experience on an identification and qualification statement. A tax
preparer shall maintain records to substantiate all of the information
contained on such a statement; provided, however, that an affidavit
signed by the tax preparer indicating that the information contained on
a statement is true shall be sufficient to substantiate any information
if other records are not available. Such records and/or affidavit shall
be kept on file on the business premises and shall be presented on
demand for inspection by the commissioner.
Section 20-741.1
§ 20-741.1 Refund anticipation loans. 1. Any tax preparer who
advertises the availability of a refund anticipation loan 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. 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 English and Spanish, in at least 14-point
type. In the event that the taxpayer does not understand English or
Spanish, the tax preparer shall also provide a point-by-point oral
explanation of the following required disclosure in a language
understood by the tax payer:
. 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 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).
It shall be the obligation of the tax preparer to complete the
required disclosure accurately with all relevant information for each
taxpayer, to provide the required point-by-point oral explanation when
necessary, and to ensure that the completed disclosure form is signed by
the taxpayer before he or she enters into a refund anticipation loan.
Section 20-742
§ 20-742 Exemptions. Apart from § 20-741.1 and the accompanying
penalties as listed in § 20-743, the provisions of this subchapter shall
not apply to:
a. 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.
b. An attorney at law who advises or assists in the preparation of
income tax returns in the practice of law and the employees thereof.
c. 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.
d. A certified public accountant and the employees thereof.
e. A public accountant licensed pursuant to the education law and the
employees thereof.
f. 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.
g. 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.
Section 20-743
§ 20-743 Penalties. Any person, partnership, corporation or other
business entity who violates any provision of this subchapter or any of
the regulations promulgated hereunder 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.
Section 20-743.1.
§ 20-743.1. Civil Cause of Action. Any person claiming to be injured
by the failure of a tax preparer to act in accordance with section
20-741.1 of this subchapter shall have a cause of action against such
tax preparer in any court of competent jurisdiction for any or all of
the following relief:
a. compensatory and punitive damages;
b. injunctive and declaratory relief;
c. attorneys' fees and costs; and
d. such other relief as a court may deem appropriate.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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