2013 New York Consolidated Laws
GBS - General Business
Article 24-C - (371 - 373) 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.