,,ii  #aah? ,,congress  #a/ ,session    
,s4 #abji  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #ai1 #bjbc,mr4  
,book] introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to regulate tax    
return prep>]s & refund anticipation    
paym5t arrangem5ts4  #a4 ,%ort title    
,?is ,act may be cit$ z ! ,tax ,refund  
,protection ,act4  #b4 ,regulation ( tax
 return prep>]s  7a7 ,9 g5]al ,section  
#ccj ( title #ca1 ,unit$ ,/ates ,code1  
is am5d$ to read z foll[s3  #ccj4       
,practice be=e ! dep>tm5t & tax return  
prep>]s  7a7 ,subject to section #ejj ( 
title #e1 ! ,secret>y ( ! ,treasury     
may-- 7#a7 regulate ! practice (        
repres5tatives ( p]sons be=e ! ,dep>tm5t
 ( ! ,treasury ?r\gh lic5sure2  7#b7    
c]tify ! practice ( tax return prep>]s2 
&  7#c7 be=e admitt+ a repres5tative or 
a tax return prep>] to practice1 require
 t ! repres5tative or tax return prep>] 
demon/rate-- 7,a7 good "*2  7,b7 good   
reputation2  7,c7 necess>y              

qualifications to enable ! repres5tative
 or tax return prep>] to provide to     
p]sons valuable s]vice2 &  7,d7         
compet5cy to advise & assi/ p]sons 9    
pres5t+ _! cases or 9 prep>+ tax        
returns1 claims = refund1 or o!r        
submissions relat$ to ! ,int]nal ,rev5ue
 ,code ( #aihf or o!r laws or           
regulations adm9i/]$ by ! ,int]nal      
,rev5ue ,s]vice4  7b7 ,any enroll$ ag5ts
 prop]ly lic5s$ to practice z requir$ "u
 rules promulgat$ "u subsection 7a7 %all
 be all[$ to use ! cr$5tials or         
designation ( enroll$ ag5t1 ,,ea1 or    
,e4,a44  7c7 7#a7 ,aft] notice &        
opportunity = a proce$+1 ! ,secret>y    
may1 ) respect to a repres5tative or tax
 return prep>] :o is describ$ 9 p>agraph
 7#b7-- 7,a7 susp5d or disb> f practice 
be=e ! ,dep>tm5t a repres5tative2  7,b7 
dec]tify a tax return prep>]2 or  7,c7  
c5sure a repres5tative or tax return    
prep>]4  7#b7 ,a repres5tative or tax   
return prep>] is describ$ 9 ?is p>agraph
 if ! repres5tative or tax return       

prep>]-- 7,a7 is incompet5t2  7,b7 is   
disreputable2  7,c7 violates regulations
 prescrib$ "u ?is section2 or  7,d7 )   
int5t to defraud1 willfully & kn[+ly    
misleads or ?reat5s ! p]son be+         
repres5t$ or a prospective p]son to be  
repres5t$4  7#c7 ,! ,secret>y may impose
 a monet>y p5alty on any repres5tative  
or tax return prep>] describ$ 9 p>agraph
 7#b74 ,if ! repres5tative or tax return
 prep>] 0 act+ on behalf ( an employ] or
 any firm or o!r entity 9 connection ) !
 conduct giv+ rise to su* p5alty1 !     
,secret>y may impose a monet>y p5alty on
 su* employ]1 firm1 or entity if x knew1
 or reasonably %\ld h kn[n1 ( su*       
conduct4 ,su* p5alty %all n exce$ !     
gross income d]iv$ 7or to be d]iv$7 f ! 
conduct giv+ rise to ! p5alty & may be 9
 addition to1 or 9 lieu (1 any susp5sion
 ( ! repres5tative1 ! dec]tification ( !
 tax return prep>]1 or c5sure ( !       
repres5tative or ! tax return prep>]4   
7d7 ,aft] notice & opportunity = a he>+ 
to any apprais]1 ! ,secret>y may-- 7#a7 

provide t appraisals by su* apprais]    
%all n h any probative effect 9 any     
adm9i/rative proce$+ be=e ! ,dep>tm5t ( 
! ,treasury or ! ,int]nal ,rev5ue       
,s]vice1 &  7#b7 b> su* apprais] f      
pres5t+ evid5ce or te/imony 9 any su*   
proce$+4  7e7 ,no?+ 9 ?is section or 9  
any o!r provision ( law %all be con/ru$ 
to limit ! au?ority ( ! ,secret>y ( !   
,treasury to impose /&>ds applicable to 
! r5d]+ ( writt5 advice ) respect to any
 entity1 transaction plan or arrangem5t1
 or o!r plan or arrangem5t1 :i* is ( a  
type :i* ! ,secret>y det]m9es z hav+ a  
pot5tial = tax avoidance or evasion4    
7f7 7#a7 ,! ,secret>y ( ! ,treasury may 
impose fees on tax return prep>]s       
necess>y to implem5t su* programs z     
requir$ by subsection 7a74  7#b7 ,9     
addition to p>agraph 7#a71 !            
,commission] ( ,int]nal ,rev5ue may     
impose an annual fee necess>y = any     
compet5cy te/+ & tra9+ requir$ =        
lic5sure & c]tification "u ?is section4 
7#c7 ,no?+ 9 ?is section may be con/ru$ 

to limit ! au?ority ( ! ,commission] (  
,int]nal ,rev5ue to issue ord]s &       
e/abli% fees relat$ to ! o!r purposes1  
includ+ ! issu+ ( ,prep>] ,tax          
,id5tification ,numb]s4  7g7 ,= purposes
 ( ?is section-- 7#a7 ! t]m tax return  
prep>] has ! mean+ giv5 su* t]m by      
section #ggja7;a77#cf7 ( ! ,int]nal     
,rev5ue ,code ( #aihf2  7#b7 ! t]m tax  
return has ! mean+ giv5 to ! t]m return 
"u section #ffif7;e77#a7 ( su* ,code2 & 
7#c7 ! t]m claim = refund has ! mean+   
giv5 su* t]m "u section #ffif7;e77#b7 ( 
su* ,code4  4  7b7 ,cl]ical am5dm5t ,!  
*apt] analysis = *apt] #c ( title #ca1  
,unit$ ,/ates ,code1 is am5d$ by /rik+ !
 item relat+ to section #ccj & ins]t+ ! 
foll[+3  #ccj4 ,practice be=e ! dep>tm5t
 & tax return prep>]s4  4  #c4 ,cl>ify+ 
au?ority to impose civil p5alties =     
improp] disclosures ,subsection 7c7 (   
section #fgac ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ to read z foll[s3  7c7
 ,exceptions  7#a7 ,exceptions ,! rules 
( section #gbaf7;b7 %all apply =        

purposes ( ?is section4  7#b7 ,cross    
ref]5ce ,see section #gbaf = crim9al    
p5alty = disclosure or use ( in=mation  
by prep>]s ( returns4  4  #d4           
,regulation ( refund anticipation paym5t
 in/rum5ts  7a7 ,disclosure requirem5ts 
= tax return prep>]s ,sub*apt] ,a (     
*apt] #hj ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #ghac4 ,disclosure       
requirem5ts = tax return prep>]s  7a7 ,9
 g5]al ,! ,secret>y may require tax     
return prep>]s to provide disclosures to
 a p]son receiv+ tax return prep>ation  
s]vices or a prospective p]son to       
receive su* s]vices4 ,su* disclosures   
%all-- 7#a7 id5tify ! am\nt ( fees ! tax
 return prep>] *>ges = prep>+ a tax     
return1 fil+ a tax return1 submitt+ a   
claim = refund1 execut+ a refund        
anticipation paym5t arrangem5t1 or      
submitt+ o!r submissions relat$ to ?is  
title or o!r laws or regulations        
adm9i/]$ by ! ,int]nal ,rev5ue ,s]vice1 
7#b7 id5tify :]e on ! website publi%$ by

 ! ,int]nal ,rev5ue ,s]vice ! av]age    
am\nt ( "t 9 :i* an individual :o files 
a ,f$]al income tax return c expect to  
receive a refund1  7#c7 9 ! case ( a    
refund anticipation paym5t arrangem5t   
involv+ a depository acc\nt n controll$ 
by ! p]son receiv+ tax return prep>ation
 s]vices or a prospective p]son to      
receive su* s]vices1 describe-- 7,a7 !  
diff]5ce 9 days betwe5 ! av]age am\nt ( 
"t by :i* a p]son receiv+ tax return    
prep>ation s]vices or a prospective     
p]son to receive su* s]vices receives ! 
tax refund 79 :ole or 9 "p7 f a refund  
anticipation paym5t arrangem5t1 &  7,b7 
! av]age am\nt ( "t by :i* a p]son      
receiv+ tax return prep>ation s]vices or
 a prospective p]son to receive su*     
s]vices :o files a ,f$]al income tax    
return electronically receives ! tax    
refund deposit$ directly to t p]son's   
acc\nt by ! tax+ au?ority1  7#d7 /ate t 
a refund anticipation paym5t arrangem5t 
is n necess>y to receive a tax refund1  
7#e7 /ate t1 if a p]son receiv+ tax     

return prep>ation s]vices or a          
prospective p]son to receive su* s]vices
 does n receive a tax refund or ! am\nt 
( ! tax refund is less ?an ! am\nt      
anticipat$ "u ! refund anticipation     
paym5t arrangem5t1 ! p]son receiv+ tax  
return prep>ation s]vices or a          
prospective p]son to receive su* s]vices
 may be responsible = pay+ any fees &   
int]e/ associat$ ) a refund anticipation
 paym5t arrangem5t1 &  7#f7 include any 
su* o!r disclosures n specifi$ 9 !      
prec$+ p>agraphs to c>ry out ?is section
 t ! ,secret>y deems appropriate4  7b7  
,refund anticipation paym5t arrangem5t  
def9$ ,= purposes ( ?is section1 ! t]m  
#8refund anticipation paym5t arrangem5t'
 means an arrangem5t "u :i*1 9 ex*ange =
 ,f$]al income tax prep>ation s]vices1 a
 consum] agrees to pay a fee or int]e/  
^u receipt ( ! consum]'s tax refund to a
 tax return prep>]1 l5d]1 or o!r        
affiliat$ l5d] by-- 7#a7 reque/+ !      
,f$]al ,gov]nm5t to deposit su* tax     
refund1 9 :ole or 9 "p1 directly into a 

depository acc\nt designat$ by ei!r !   
consum] or ! tax return prep>]1 l5d]1 or
 o!r affiliat$ l5d]1 or  7#b7 directly  
pay+ ! fee or int]e/ to ! tax return    
prep>]1 l5d]1 or o!r affiliat$ l5d]4  4 
7b7 ,failure ,to disclose ,"p ,i (      
sub*apt] ,b ( *apt] #fh ( su* ,code is  
am5d$ by add+ at ! end ! foll[+3        
#fgbj;,d4 ,failure to meet disclosure   
requirem5ts = tax return prep>]s  7a7   
,g5]al rule ,if a tax return prep>]     
fails to meet ! requirem5ts ( section   
#ghac1 ! ,secret>y may impose a p5alty (
 up to #a1jjj p] ea* su* failure4  7b7  
,p5alty 9 addition to o!r p5alties ,!   
p5alty impos$ by ?is section %all be 9  
addition to any o!r p5alty impos$ by    
law4  4  7c7 ,cl]ical am5dm5ts  7#a7 ,! 
table ( sections = sub*apt] ,b ( *apt]  
#fh ( su* ,code is am5d$ by ins]t+ aft] 
! item relat$ to section #fgbj;,c !     
foll[+ new item3  ,sec4 #fgbj;,d4       
,failure to meet disclosure requirem5ts 
= tax return prep>]s4  4  7#b7 ,! table 
( sections = sub*apt] ,a ( *apt] #hj (  

su* ,code is am5d$ by ins]t+ aft] ! item
 relat$ to section #ghab ! foll[+ new   
item3  ,sec4 #ghac4 ,disclosure         
requirem5ts = tax return prep>]s4  4    
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply ) respect to     
returns fil$ aft] ,decemb] #ca1 #bjbc4