,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ddfc ,,in ,,the ,,house ,,of ,,representatives ,april #aj1 #bjad ,ms4 ,bonamici introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,consumer ,financial ,protection ,act of #bjaj to regulate tax return preparers and refund anticipation payment arrangements1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,tax ,refund ,protection ,act of #bjad4 #b4 ,regulation of refund anticipation payment instruments and tax return preparers 7a7 ,in general ,subtitle ,b of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha et seq47 is amended by adding at the end the following new section3 #ajbi;,b4 ,regulation of refund anticipation payment arrangements and tax return preparers 7a7 ,in general ,the ,bureau shall-- 7#a7 regulate refund anticipation payment arrangements2 7#b7 establish a program to license or certify tax return preparers subject to this section2 7#c7 regulate such tax return preparers2 and 7#d7 before licensing or certifying a person as a tax return preparer subject to this section1 require that the person demonstrate-- 7,a7 good character2 7,b7 good reputation2 7,c7 necessary qualifications to enable the person to provide to persons valuable service as a tax return preparer2 and 7,d7 competency to perform the functions of a tax return preparer4 7b7 ,authority ,to impose a fee ,the ,bureau shall require tax return preparers subject to this section to pay a reasonable fee for licensing or certification under this section4 7c7 ,disclosure requirements ,the ,bureau shall1 by rule1 require tax return preparers subject to this section to provide a disclosure statement to a consumer that shall contain statements-- 7#a7 identifying the amount of fees such tax return preparer charges for preparing a ,federal income tax return1 filing a ,federal income tax return1 or executing a refund anticipation payment arrangement2 7#b7 identifying the average amount of time in which an individual who files a ,federal income tax return electronically can expect to receive a refund by mail1 according to information provided by the ,internal ,revenue ,service2 7#c7 describing1 in the case of a refund anticipation payment arrangement involving a depository account not controlled by the consumer1 the difference in days between the average amount of time by which a consumer receives the tax refund 7in whole or in part7 from a refund anticipation payment arrangement and the average amount of time by which a consumer who files a ,federal income tax return electronically receives the tax refund deposited directly to that consumer's deposit account by the taxing authority2 7#d7 that a refund anticipation payment arrangement is not necessary to receive a tax refund2 and 7#e7 that1 if a consumer does not receive a tax refund or the amount of the tax refund is less than the amount anticipated under the refund anticipation payment arrangement1 the consumer may be responsible for paying any fees and interest associated with a refund anticipation payment arrangement4 7d7 ,requirements under ,,tila ,the ,bureau shall issue regulations that1 to the extent practicable1 require tax return preparers that enter into a refund anticipation payment arrangement to comply with section #abh of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7 to the same extent as a creditor making a consumer credit transaction other than under an open end credit plan4 7e7 ,disciplinary procedures ,after notice and opportunity for a hearing1 the ,bureau may take any enforcement action against a tax return preparer subject to this section who-- 7#a7 is incompetent2 7#b7 is disreputable2 7#c7 violates regulations prescribed under this section2 or 7#d7 with intent to defraud1 willfully and knowingly misleads or threatens a consumer4 7f7 ,definitions ,for purposes of this section1 the following definitions shall apply3 7#a7 ,tax return preparer ,the term tax return preparer subject to this section means a tax return preparer 7as defined in section #ggja7;a77#cf7 of the ,internal ,revenue ,code of #aihf7 who is not subject to regulation under section #ccj of title #ca1 ,united ,states ,code4 7#b7 ,refund anticipation payment arrangement ,the term refund anticipation payment arrangement means an arrangement under which1 in exchange for ,federal income tax preparation services1 a consumer agrees to pay a fee or interest upon receipt of the consumer's tax refund to a tax return preparer1 lender1 or other affiliated lender by-- 7,a7 requesting the ,federal ,government to deposit such tax refund1 in whole or in part1 directly into a depository account designated by either the consumer or the tax return preparer1 lender1 or other affiliated lender2 or 7,b7 directly paying the fee or interest to the tax return preparer1 lender1 or other affiliated lender4 4 7b7 ,clerical amendment ,the table of contents of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecja et seq47 is amended by inserting after the item related to section #ajbi;,a the following new item3 ,sec4 #ajbi;,b4 ,regulation of refund anticipation payment arrangements and tax return preparers4 4 7c7 ,exclusion for certain tax preparers 7#a7 ,in general ,section #ajbg7;d77#a7 of such ,act is amended by striking subparagraph 7,b74 7#b7 ,conforming amendments ,section #ajbg7;d7 of such ,act is further amended-- 7,a7 in paragraph 7#a7-- 7i7 in the heading1 by striking and tax preparers2 7ii7 by striking subparagraph 7,b72 7iii7 by striking authority over and all that follows through any person and inserting authority over any person2 7iv7 by redesignating clauses 7i7 and 7ii7 as subparagraphs 7,a7 and 7,b71 respectively1 and by moving such subparagraphs #b ems to the left2 7v7 by redesignating subclauses 7,i7 and 7,,ii7 as clauses 7i7 and 7ii71 respectively1 and by moving such clauses #b ems to the left2 7vi7 in subparagraph 7,a7 7as redesignated71 by inserting 7except as related to tax return preparers pursuant to section #ajbi;,b7 after tax2 and 7vii7 in clause 7ii7 7as redesignated71 by striking 2 or and inserting a period2 and 7,b7 in paragraph 7#b7-- 7i7 in subparagraph 7,a7-- 7,i7 by striking paragraph 7#a77;,a7 or 7#a77;,b7 and inserting such paragraph2 and 7,,ii7 by striking paragraph 7#a77;,a7 each place it appears and inserting paragraph 7#a72 7ii7 in subparagraph 7,c7-- 7,i7 by striking ,for purposes of subparagraphs 7,a7 and 7,b71 a person described in paragraph 7#a77;,a7 and inserting ,a person described in paragraph 7#a72 and 7,,ii7 by striking clause 7i7 or 7ii7 of paragraph 7#a77;,a7 and inserting subparagraph 7,a7 or 7,b7 of paragraph 7#a72 and 7iii7 in subparagraph 7,d71 by striking described in paragraph 7#a77;,a7 or 7#a77;,b74 #c4 ,split refunds may include tax return preparer 7a7 ,in general ,section #fdjb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7m7 ,split refunds ,an income tax refund requested on a return of ,federal income tax prepared by an income tax preparer may be split between the preparer and the taxpayer in accordance with the split requested by the taxpayer on the return4 ,a split of an individual income tax return under this subsection shall not be treated as disreputable conduct merely because the taxpayer requested such split4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply with respect to returns for taxable years ending after the date of the enactment of this ,act4