NY State Assembly Bill 2009-A8959

Assembly Bill A8959

2009-2010 Legislative Session

Makes technical corrections relating to registration of tax return preparers and refund anticipation loans

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to ways and means
Jun 17, 2009	referred to ways and means

2009-A8959 (ACTIVE) - Details

See Senate Version of this Bill:: S5970
Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §32, Tax L; amd §§371 & 372, Gen Bus L

2009-A8959 (ACTIVE) - Summary

Makes technical corrections relating to registration of tax return preparers and refund anticipation loans.

2009-A8959 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8959

TITLE  OF BILL:   An act to amend the tax law and the general business
law, in relation to tax return preparers and refund anticipation loans

PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to  amend
Section  32 of the tax law, enacted as part of the 2009-2010 Executive
Budget, to reflect current practices in the tax  preparation  business
and allow for the regulation of refund anticipation loan transactions.

SUMMARY OF SPECIFIC PROVISIONS: The bill would amend Section 32 of the
tax law to:

*Delete references to refund anticipation checks;

*Clarify  the  language  with  regard  to  the  solicitation of refund
anticipation loans;

*Clarify the language with regard to who is considered a facilitator;

*Clarify the language with regard to who is considered a  third  party
as  it  pertains to directly or indirectly arranging for third parties
to charge interest or fees;

*Delete language that prohibits a tax preparer or lenders from seeking
to collect on delinquent tax preparer fees and loans;

*Delete language that would prohibit a loan agreement  from  requiring
arbitration of disputes;

*Provide for annual cap of $25,000 for violations;

*Modify  the prohibition on check cashing by a RAL facilitator to only
apply when the tax preparer received ten percent or more of its annual
revenue from check cashing fees.

JUSTIFICATION:  This bill would amend Section 32 of  the  tax  law  to
better  reflect  current practices in the tax preparation business and
the facilitation of refund anticipation loans. The bill  would  delete
references  to refund anticipation checks or RACs. A RAC is not a type
of loan, nor is it an interest barring bank credit product. A  RAC  is
an  inexpensive  alternative  to RALS that benefit consumers who would
prefer not to pay their tax preparation fees until they have  received
their  refunds.  It  also  provides  consumers  the  ability to direct
deposit their tax returns in to a bank account, an advantage for those
who do not have bank accounts but are looking to open one.  For  these
tax  payers,  this  can reduce the refund time from 4 to 6 weeks for a
paper check to  8-14  days.  RACS  are  inexpensive,  no  interest  is
charged, and no credit check is needed.

The  bill  specifically  clarifies  language  regarding who is and who
isn't a facilitator of loans so as not to include  lenders,  marketing
professionals, advertisers or media outlets. The amendments to Section
32   will  allow  tax  preparation  firms  to  continue  to  negotiate
agreements with banks that have lead to lower  costs  for  RAL  loans.
Recent  industry data suggests that tax preparers have negotiated a 40
percent decrease in RAL rates in the last two years.


The bill modifies language that would have prohibited check cashing by
a facilitator to only come into play if the tax preparer received  ten
percent  of  more  of  its annual revenue from check cashing fees. The
language as originally drafted would  prevent  those  tax  preparation
firms  who  operate  in  Sears  and  Wal-Mart  and  have check cashing
operations from entering into arrangements with  those  merchants.  It
would  also  impact  tax  preparers who have check cashing machines in
their tax offices. The revised language will  help  New  York  address
check  cashers  who  do  tax  preparation  just to drive check cashing
revenue, but not inadvertently impact tax preparers who are partnering
with merchants such as Sears and Wal-Mart.

PRIOR LEGISLATIVE HISTORY:  This is a new bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL  GOVERNMENTS:    There  is  no
fiscal impact for state and local governments

EFFECTIVE DATE:  This bill would take effect January 1, 2010.

2009-A8959 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8959

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 17, 2009
                               ___________

Introduced  by M. of A. FARRELL -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the tax law and the general business law, in relation to
  tax return preparers and refund anticipation loans

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraphs 6, 10 and 11 of subdivision (a) of section 32 of
the  tax law, as added by section 2 of part VV of chapter 59 of the laws
of 2009, are amended to read as follows:
  (6) "Facilitator" means a person who individually or in conjunction or
cooperation with another person: (a) [solicits the execution of,]  proc-
esses,  receives,  or  accepts  an application or agreement for a refund
anticipation loan [or refund anticipation check, (b) serves or  collects
upon  a refund anticipation loan or refund anticipation check]; or [(c)]
(B) in any other manner facilitates the making of a refund  anticipation
loan [or refund anticipation check]. This term excludes any employees of
a  facilitator  who  provide  only  clerical or other comparable support
services to such facilitator.   THIS TERM ALSO  EXCLUDES  A  PERSON  WHO
MAKES  A  REFUND  ANTICIPATION  LOAN  OR A REFUND ANTICIPATION CHECK, AN
AFFILIATE THAT IS A SERVICER FOR SUCH A PERSON, OR ANY PERSON  WHO  DOES
NOT  HAVE DIRECT CONTACT WITH A TAXPAYER IN CONNECTION WITH APPLYING FOR
OR OBTAINING A REFUND ANTICIPATION LOAN OR A REFUND ANTICIPATION CHECK.
  (10) "Refund anticipation check" means a check, stored value card,  or
other  payment  mechanism  [which:  (a) represents the proceeds of a tax
refund; (b) was issued by a depository institution or other person  that
received  a  direct  deposit of the tax refund or tax credits; and (c) a
fee or other consideration is  paid  for  such  payment  mechanism]  (A)
CONTAINING  THE  PROCEEDS OF A TAX REFUND DEPOSITED OR ISSUED BY THE IRS
OR STATE TAXING AUTHORITY INTO AN ACCOUNT NOT OWNED BY THE TAXPAYER; (B)
WHICH WAS ISSUED BY  A  DEPOSITORY  INSTITUTION  OR  OTHER  PERSON  THAT
RECEIVED A DIRECT DEPOSIT OF THE TAX REFUND OR TAX CREDITS DIRECTLY FROM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14396-01-9

A. 8959                             2

THE  IRS  OR  STATE  TAXING  AUTHORITY; AND (C) FOR WHICH A FEE OR OTHER
CONSIDERATION HAS BEEN PAID FOR SUCH PAYMENT MECHANISM.  NOTWITHSTANDING
ANY OTHER PROVISIONS OF THIS PARAGRAPH, A DEPOSIT OF TAX REFUND PROCEEDS
FROM THE IRS OR STATE TAXING AUTHORITY DIRECTLY TO A CHECK, STORED VALUE
CARD, OTHER PAYMENT INSTRUMENT, OR BANK ACCOUNT OWNED BY THE TAXPAYER IS
NOT A REFUND ANTICIPATION CHECK.
  (11)  "Refund  anticipation loan" means a loan that is secured by [or]
AND that the creditor arranges to be repaid directly or indirectly  from
the  proceeds  of  an  income tax refund or tax credits. A refund antic-
ipation loan also includes any sale,  assignment,  or  purchase  of  tax
refund at a discount or for a fee, whether or not the amount is required
to be repaid to the buyer or assignee if the internal revenue service or
the department denies or reduces the amount of the tax refund.
  S  2.  Paragraphs  1 and 2 of subdivision (b) of section 32 of the tax
law, as added by section 2 of part VV of chapter 59 of the laws of 2009,
are amended to read as follows:
  (1) Each tax return preparer, who will prepare at least one return  in
a calendar year, and each facilitator, who will facilitate the making of
a refund anticipation loan [or refund anticipation check], must register
electronically with the department for that calendar year, in accordance
with instructions prescribed by the commissioner.
  (2)(A)  Upon  completion  of the registration process, each tax return
preparer and facilitator will be issued a tax  preparer  or  facilitator
registration  certificate.  If  an  individual acts as both a tax return
preparer and a facilitator, one registration certificate shall  indicate
both activities.
  (B)  In  accordance  with instructions prescribed by the commissioner,
each tax return preparer and facilitator will also be assigned a  unique
identification  number  by the department, which must be used by the tax
return preparer and facilitator on each  return  which  the  tax  return
preparer  is  required  to  sign  and each refund anticipation loan [and
refund anticipation check] the facilitator is required to sign.
  (C) If a tax return preparer or facilitator is an employee or prospec-
tive employee of a tax return preparer, a commercial tax return prepara-
tion business, or a facilitator, the tax return preparer, commercial tax
return preparation business or facilitator must ensure that the employee
or prospective employee is properly registered with the  department  and
possesses  a valid tax preparer or facilitator registration certificate.
If an individual acts as both a tax return preparer  and  a  facilitator
one registration certificate shall indicate both activities.
  S  3.  Subdivisions  (f), (g) and (g) of section 32 of the tax law, as
added by section 2 of part VV of chapter 59 of the  laws  of  2009,  are
amended to read as follows:
  (f)  (1) A tax return preparer or facilitator shall not: (A) charge or
impose any fee, charge or other consideration in the making  or  facili-
tating  of a refund anticipation loan or refund anticipation check apart
from the fee charged by the creditor or bank that provided the  loan  or
check;
  (B)  Engage in unfair or deceptive acts or practices in the facilitat-
ing of a refund [anticipation check  or  a  refund]  anticipation  loan,
including  making  any oral statements contradicting any of the informa-
tion required to be disclosed under the Taxpayer Bill of Rights  as  set
forth in sections three hundred seventy-one through three hundred seven-
ty-three of the general business law;

A. 8959                             3

  (C)  [Directly  or  indirectly arrange for a third party to charge any
interest, fee or charge related to a refund anticipation loan or  refund
anticipation check;
  (D)] Include any of the following provisions in any documents provided
or  signed  to obtain a refund anticipation loan [or refund anticipation
check], including the loan application or agreement: (i) a hold harmless
clause; (ii) a confession of judgment clause; (iii)  [a  waiver  of  the
right  to  a jury trial; (iv)] any assignment of or order for payment of
wages or other compensation for services; [(v)] OR (IV) a waiver of  any
provision of the Taxpayer Bill of Rights, as set forth in sections three
hundred  seventy-one  through three hundred seventy-three of the general
business law[; or (vi) a waiver of the right to injunctive, declaratory,
other equitable relief, or relief on a classwide basis].  Any  aforemen-
tioned waivers shall be deemed null, void and of no effect;
  [(E)]  (D)  Take or arrange for a creditor to take a security interest
in any property interest of the taxpayer other than the proceeds of  the
tax  refund  OR THE ACCOUNT INTO WHICH THE REFUND IS DEPOSITED to secure
payment of a refund anticipation loan;
  [(F) Directly or indirectly, individually or in conjunction or cooper-
ation with another person, engage in the collection of an outstanding or
delinquent refund anticipation loan for any creditor or assignee;
  (G)] (E) Refer, facilitate, solicit consumers or conduct  business  on
behalf  of, in conjunction with or on the same premises as a third party
engaged in check cashing for a fee, WHEN SUCH THIRD  PARTY  RECEIVES  AT
LEAST TEN PERCENT OF ITS ANNUAL REVENUE FROM CASHING CHECKS FOR A FEE;
  [(H)]  (F) Make a misrepresentation of fact in obtaining or attempting
to obtain a registration; or
  [(I)] (G) Engage in any other action prohibited by  rules  promulgated
by the commissioner.
  (2)  If  a  tax  return  preparer  violates  any one of the provisions
provided for in this subdivision, then the tax return preparer must  pay
a  penalty  of five hundred dollars for each such violation, in addition
to any other penalties provided for in this section.
  (g) (1) If a tax return preparer or facilitator is required to  regis-
ter  or  re-register  with  the  department pursuant to paragraph one or
three of subdivision (b) of this section, as applicable, and fails to do
so in accordance with the terms of this section,  then  the  tax  return
preparer  [of]  OR  facilitator  must pay a penalty of two hundred fifty
dollars.  Provided, however, that if the tax return preparer or  facili-
tator complies with the registration requirements of this section within
ninety calendar days after notification of assessment of this penalty is
sent  by  the  department,  then this penalty must be abated. If the tax
return preparer or facilitator continues to fail to register  or  re-re-
gister  after the ninety calendar day period, the tax return preparer or
facilitator must pay an additional penalty of five  hundred  dollars  if
the  failure  is  for  not  more than one month, with an additional five
hundred dollars for each additional month  or  fraction  thereof  during
which  the failure continues. Once the ninety calendar days specified in
this paragraph have expired, the penalty can be  waived  only  for  good
cause shown by the tax return preparer or facilitator.
  (2)  If  a  commercial  tax  return  preparer  fails to pay the fee as
required in paragraph one of subdivision (c)  of  this  section,  for  a
calendar year, then the commercial tax return preparer must pay a penal-
ty  of  fifty dollars for each return the commercial tax return preparer
has filed with the department in that calendar year.  Provided  however,
that  if  the  commercial  tax return preparer complies with the payment

A. 8959                             4

requirements of paragraph one of subdivision (c) of this section, within
ninety calendar days after notification of the assessment of this penal-
ty is sent by the department, then this  penalty  must  be  abated.  The
maximum  penalty that may be imposed under this paragraph on any commer-
cial tax return preparer during any calendar year must not  exceed  five
thousand  dollars. Once the ninety calendar days specified in this para-
graph have expired, the penalty can be waived only for good cause  shown
by the commercial tax return preparer.
  (3)  If  a  tax  return  preparer fails to sign his or her name to any
return that requires the tax return preparer's signature, or a facilita-
tor fails to sign his or her name to any  refund  anticipation  loan  or
refund  anticipation  check  facilitation  documentation,  then  the tax
return preparer or facilitator must pay a penalty in the amount  of  two
hundred  fifty  dollars  for each failure to so sign. Provided, however,
that this penalty can be waived only for good cause  shown  by  the  tax
return preparer or facilitator.
  The  maximum  penalty  imposed  under this paragraph on any tax return
preparer with respect to returns filed during any calendar year  by  the
tax  return  preparer,  or on any facilitator with respect to any refund
anticipation loan [or refund anticipation check] facilitation documenta-
tion completed during any calendar year  by  the  facilitator  must  not
exceed  ten  thousand  dollars.  Provided, however, that if a tax return
preparer or facilitator has been penalized under this  paragraph  for  a
preceding  calendar  year and again fails to sign his or her name on any
return that requires the tax return preparer's signature or again  fails
to  sign  his  or  her  name  on any refund anticipation loan [or refund
anticipation  check]  facilitation  documentation  during  a  subsequent
calendar  year,  then  the penalty under this paragraph for each failure
will be five hundred dollars[, and no annual  cap  will  apply]  AND  AN
ANNUAL CAP OF TWENTY-FIVE THOUSAND DOLLARS SHALL APPLY.
  (4)  If  a  tax  return preparer or a facilitator fails to include the
unique identification number assigned  by  the  department  pursuant  to
subparagraph  (B) of paragraph two of subdivision (b) of this section on
any return, or any return  anticipation  loan  [or  return  anticipation
check]  facilitation  documentation  that requires his or her signature,
then the tax return preparer or facilitator must pay a  penalty  of  one
hundred  dollars for each failure to include his or her unique identifi-
cation number. Provided, however, that this penalty can be  waived  only
for  good  cause  shown  by  the tax return preparer or facilitator. The
maximum penalty imposed under this paragraph on any tax return  preparer
or  facilitator  with  respect to returns filed during any calendar year
must not exceed two thousand five hundred  dollars;  provided,  however,
that  if  a  tax return preparer or facilitator has been penalized under
this paragraph for a preceding calendar year and again fails to  include
the  unique identification number on one or more returns during a subse-
quent calendar year, then the penalty  under  this  paragraph  for  each
failure  will  be  two  hundred  fifty  dollars[, and no annual cap will
apply] AND AN ANNUAL CAP OF FIVE THOUSAND DOLLARS SHALL APPLY.
  (5) If a tax return preparer, facilitator or a commercial  tax  return
preparation business employs an individual to prepare tax returns who is
not  registered  with  the  department  and does not possess a valid tax
preparer or facilitator registration certificate, then  the  tax  return
preparer,  facilitator or commercial tax return preparation business, as
applicable, will be subject to a penalty of  five  hundred  dollars  per
occurrence. This penalty can be waived only for good cause shown.

A. 8959                             5

  (6)  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 this chapter.
  [(g)] (H) The provisions of this section will apply exclusively to the
registration  of  tax return preparers and facilitators with the depart-
ment, payment of the registration fee  if  required  by  commercial  tax
return preparers, the signing of returns and use of the unique identifi-
cation  numbers  assigned  by  the department upon registration.   Other
provisions of this chapter or any other  provision  of  law  prescribing
additional  requirements applicable to tax return preparers or facilita-
tors will not be affected by the provisions of this  section  except  as
set forth expressly herein, and will remain in full force and effect.
  S  4.  Subdivisions (a) and (c) of section 371 of the general business
law, subdivision (a) as amended and subdivision (c) as added by  section
5  of  part VV of chapter 59 of the laws of 2009, are amended to read as
follows:
  (a) "Facilitator" means a person who individually or in conjunction or
cooperation with another person[: (i) solicits the execution of,]  proc-
esses,  receives,  or  accepts  an application or agreement for a refund
anticipation loan [or refund anticipation check; (ii) serves or collects
upon a refund anticipation loan or refund anticipation check;  or  (iii)
in any other manner that facilitates the making of a refund anticipation
loan  or refund anticipation check]. This term excludes any employees of
a facilitator who provide only  clerical  or  other  comparable  support
services  to  such  facilitator.   THIS TERM ALSO EXCLUDES A PERSON THAT
MAKES A REFUND ANTICIPATION LOAN OR  A  REFUND  ANTICIPATION  CHECK,  AN
AFFILIATE  THAT  IS A SERVICER FOR SUCH A PERSON, OR ANY PERSON WHO DOES
NOT HAVE DIRECT CONTACT WITH A TAXPAYER IN CONNECTION WITH APPLYING  FOR
OR OBTAINING A REFUND ANTICIPATION LOAN OR A REFUND ANTICIPATION CHECK.
  (c)  "Refund  anticipation check" means a check, stored value card, or
other payment mechanism: (i) [representing] CONTAINING the proceeds of a
tax refund DEPOSITED OR ISSUED BY THE IRS OR STATE TAXING AUTHORITY INTO
AN ACCOUNT NOT OWNED BY THE TAXPAYER; (ii) which was issued by a deposi-
tory institution or other person that received a direct deposit  of  the
tax refund or tax credits DIRECTLY FROM THE IRS OR STATE TAXING AUTHORI-
TY;  and  (iii) for which a fee or other consideration has been paid for
such payment mechanism.  NOTWITHSTANDING ANY OTHER  PROVISIONS  OF  THIS
PARAGRAPH, A DEPOSIT OF TAX REFUND PROCEEDS FROM THE IRS OR STATE TAXING
AUTHORITY  DIRECTLY  TO  A  CHECK,  STORED  VALUE CARD, OR OTHER PAYMENT
INSTRUMENT, OR BANK ACCOUNT OWNED BY THE TAXPAYER IS NOT A REFUND ANTIC-
IPATION CHECK.
  S 5. Paragraph 2 of subdivision (b) and subdivisions (e)  and  (f)  of
section  372 of the general business law, paragraph 2 of subdivision (b)
and subdivision (e) as amended and subdivision (f) as added by section 6
of part VV of chapter 59 of the laws of 2009, are  amended  to  read  as
follows:
  (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;
  (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  insti-

A. 8959                             6

tution.  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 RESPON-
SIBLE 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  ELECTRON-
ICALLY  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

A. 8959                             7

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  prima-
rily 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  faci-
litator  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 consum-
er chooses direct deposit to their own personal bank account.]
  S 6. This act shall take effect immediately.

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