99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4031
 
Introduced , by Rep. Marcus C. Evans, Jr.
 
SYNOPSIS AS INTRODUCED:



New Act

 Creates the Tax Consultant and Tax Preparer Licensure Act. Provides that tax consultants must be licensed by the Department of Revenue. Provides that a person may not prepare or advise or assist in the preparation of personal income tax returns for another for valuable consideration, or represent that the person is so engaged, unless the person is licensed as a tax consultant. Provides that a tax preparer may prepare or advise or assist in the preparation of tax returns only under the supervision of a licensed tax consultant, and provides that those tax preparers must also be licensed by the Department of Revenue. Contains provisions concerning fees, suspension or revocation of licenses, and prohibited activities. Contains provisions concerning refund anticipation loans. Effective immediately.



LRB099 09104 HLH 29297 b


FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB4031LRB099 09104 HLH 29297 b



1 AN ACT concerning regulation.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 1. Short title. This Act may be cited as the Tax 
5Consultant and Tax Preparer Licensure Act.

6 Section 5. Definitions. As used in this Act:
7 "Department" means the Department of Revenue.
8 "Facilitator" means a person that individually or in 
9conjunction or cooperation with another person processes, 
10receives, or accepts for delivery an application for a refund 
11anticipation loan or a check in payment of refund anticipation 
12loan proceeds or in any other manner materially facilitates the 
13making of a refund anticipation loan.
14 "Facilitator" does not mean a financial institution, an 
15affiliate that is a servicer for a financial institution, a 
16person issued a certificate as a certified public accountant or 
17licensed as a public accountant, or any person that acts solely 
18as an intermediary and does not deal with a taxpayer in the 
19making of a refund anticipation loan.
20 "Lender" means a person that makes a refund anticipation 
21loan with the person's own funds or a line of credit or other 
22funding from a financial institution, but does not include a 
23financial institution.
 
 
HB4031- 2 -LRB099 09104 HLH 29297 b


1 "Refund anticipation loan" means a loan that the lender 
2arranges to be repaid directly from the proceeds of the 
3taxpayer's federal or State personal income tax refund.
4 "Refund anticipation loan fee" means the charges, fees, or 
5other consideration charged or imposed by the lender or 
6facilitator for the making of a refund anticipation loan.
7 "Refund anticipation loan fee" does not mean any charge, 
8fee, or other consideration usually charged or imposed by the 
9facilitator in the ordinary course of business for non-loan 
10services, including fees for tax return preparation and fees 
11for electronic filing of tax returns.
12 "Taxpayer" means an individual who files a federal or 
13Illinois personal income tax return.

14 Section 10. Prohibited activities. 
15 (a) Except as otherwise provided in this Act, a person may 
16not prepare, or advise or assist in the preparation of, 
17personal income tax returns for another for valuable 
18consideration, or represent that the person is so engaged, 
19unless the person is licensed as a tax consultant under this 
20Act.
21 (b) A tax preparer may prepare or advise or assist in the 
22preparation of tax returns only under the supervision of a 
23licensed tax consultant, and subject to such conditions and 
24limitations as the Department by rule may impose.
25 (c) A person may not be a facilitator of a refund 
 
 
HB4031- 3 -LRB099 09104 HLH 29297 b


1anticipation loan without first being issued a license as a tax 
2consultant or tax preparer under this Act.

3 Section 15. Qualifications for tax consultant and tax 
4preparer; examination. 
5 (a) Every applicant for a license as a tax consultant and 
6every applicant for licensing as a tax preparer must:
7  (1) be 18 years of age or older;
8  (2) possess a high school diploma or have passed an 
9 equivalency examination;
10  (3) present evidence satisfactory to the Department 
11 that the applicant has successfully completed at least 80 
12 hours in basic personal income tax law, theory, and 
13 practice at a school training session or educational 
14 institution approved by the Department; and
15  (4) possess a preparer tax identification number 
16 issued by the Internal Revenue Service.
17 (b) In addition to the requirements of subsection (a) of 
18this Section, every applicant for licensing as a tax preparer 
19must pass an examination in the form and manner prescribed by 
20the Department. The examination must measure the applicant's 
21knowledge of Illinois and federal personal income tax law, 
22theory, and practice.
23 (c) In addition to the requirements of subsection (a) of 
24this Section, every applicant for licensing as a tax consultant 
25must do all of the following:
 
 
HB4031- 4 -LRB099 09104 HLH 29297 b


1  (1) Present evidence satisfactory to the Department of 
2 employment as a tax preparer in this or another state in a 
3 capacity that is, in the judgment of the Department, 
4 equivalent to that of a tax preparer or tax consultant, for 
5 not less than a cumulative total of 1,100 hours during at 
6 least 2 of the last 5 years. The Department shall consider 
7 certification submitted by a tax consultant that the 
8 applicant was employed as a tax preparer under his or her 
9 supervision for the period indicated in the certificate to 
10 be satisfactory evidence of the applicant's employment as a 
11 tax preparer for the period indicated. If an applicant has 
12 worked less than a cumulative total of 1,100 hours in at 
13 least 2 of the last 5 years, the Department may consider 
14 the number of hours employed, the number of years employed, 
15 the number of tax returns prepared, and whether the work 
16 involved contributed directly to the professional 
17 competence of the individual in determining if a tax 
18 preparer or tax consultant has met the work experience 
19 requirement.
20  (2) Pass an examination in the form and manner 
21 prescribed by the Department. The examination must measure 
22 the applicant's knowledge of Illinois and federal personal 
23 income tax law, theory, and practice, and be of a more 
24 exacting nature and require higher standards of knowledge 
25 of personal income tax law, theory, and practice than the 
26 examination for a tax preparer's license.
 
 
HB4031- 5 -LRB099 09104 HLH 29297 b


1 (d) If, in the judgment of the Department, an applicant 
2has, in combination, the education and experience to qualify 
3for a tax consultant's or preparer's license, but does not meet 
4or cannot present evidence of strict compliance with the 
5requirements of paragraph (3) of subsection (a) or item (1) of 
6subsection (c) of this Section, the Department may allow some 
7of the applicant's education or experience to substitute one 
8for the other. However, this subsection does not allow a waiver 
9of, or substitution for, any qualifications needed for a tax 
10consultant's or preparer's license other than those described 
11in those paragraphs.

12 Section 20. Tax consultant's application. Every person 
13desiring to be licensed as a tax consultant shall apply in 
14writing to the Department. The application forms shall be 
15approved by the Department. Each application shall include or 
16be accompanied by evidence, satisfactory to the Department, 
17that the applicant meets the qualifications prescribed in this 
18Act. Each application shall be accompanied by the examination 
19fee as provided under Section 70.

20 Section 25. Tax preparer's application. Every person 
21desiring to be licensed as a tax preparer shall apply in 
22writing to the Department. The application forms shall be 
23approved by the Department. Each application shall include or 
24be accompanied by evidence, satisfactory to the Department, 
 
 
HB4031- 6 -LRB099 09104 HLH 29297 b


1that the applicant meets the qualifications prescribed in this 
2Act. The application shall be accompanied by the examination 
3fee as provided under Section 70.

4 Section 30. Licensing of person licensed in another state 
5or enrolled to practice before Internal Revenue Service; 
6requirements; fees. 
7 (a) The Department may issue a license to an applicant for 
8a license as a tax consultant or as a tax preparer who:
9  (1) presents evidence satisfactory to the Department 
10 that the applicant is licensed as a tax consultant or 
11 preparer in a state that has requirements for licensing 
12 substantially similar to the requirements for licensing in 
13 this State; and
14  (2) has passed to the satisfaction of the Department an 
15 examination covering Illinois personal income tax law, 
16 theory, and practice, the provisions of this Act, and the 
17 code of professional conduct prescribed by the Department.
18 (b) Notwithstanding subsection (a) of this Section, the 
19Department shall license as a tax consultant any person who is, 
20on the date of the application for a tax consultant's license, 
21enrolled to practice before the Internal Revenue Service if the 
22person has passed to the satisfaction of the Department an 
23examination covering Illinois personal income tax law, theory, 
24and practice, the provisions of this Act, and the code of 
25professional conduct prescribed by the Department.
 
 
HB4031- 7 -LRB099 09104 HLH 29297 b


1 (c) Except as otherwise provided in this Section, an 
2examination is not required for licensing under this Section.
3 (d) Any person desiring to be licensed under this Section 
4shall make written application to the Department and shall pay 
5to the Department at the time required by the Department the 
6examination and license fees provided by rule of the 
7Department.

8 Section 35. Issuance of licenses. The Department shall 
9license as a tax consultant or a tax preparer each applicant 
10who:
11  (1) demonstrates to the satisfaction of the Department 
12 fitness for a license;
13  (2) pays to the Department an initial license fee as 
14 provided under Section 70; and
15  (3) has no disciplinary actions pending before the 
16 Department.
17 The Department shall issue evidence of licensing to each 
18person licensed.

19 Section 40. Preparation of tax returns by corporation, 
20firm, or partnership; requirements; liability; prohibitions.
21 (a) A sole proprietorship, partnership, corporation or 
22other legal entity, through individuals who are authorized 
23within this State to render those services, may engage in the 
24preparation, or in advising or assisting in the preparation of 
 
 
HB4031- 8 -LRB099 09104 HLH 29297 b


1personal income tax returns for another for valuable 
2consideration and represent that it is so engaged if the 
3entity:
4  (1) registers annually with the Department in the 
5 manner prescribed by the Department;
6  (2) designates and reports in the manner prescribed by 
7 the Department the authorized individual or individuals 
8 who are responsible for the tax return preparation 
9 activities and decisions of the entity; and
10  (3) complies with this Act and the rules adopted by the 
11 Department.
12 (b) A sole proprietorship, partnership, corporation, or 
13other legal entity shall not be relieved of responsibility for 
14the conduct or acts of its agents, employees, or officers by 
15reason of its compliance with subsection (a) of this Section, 
16nor shall a licensed tax consultant be relieved of 
17responsibility for professional services performed by reason 
18of employment by or relationship with such sole proprietorship, 
19partnership, corporation or other legal entity.
20 (c) A sole proprietorship, partnership, corporation or 
21other legal entity shall not engage in tax return preparation 
22activities under subsection (a) of this Section if the tax 
23consultant, or the proprietor, a partner, a principal, an 
24officer, director or manager, or a shareholder of the entity, 
25is:
26  (1) an individual whose license as a tax consultant or 
 
 
HB4031- 9 -LRB099 09104 HLH 29297 b


1 tax preparer has been permanently revoked;
2  (2) an individual to whom the Department has refused to 
3 issue or renew a license on the basis of dishonest conduct 
4 or conduct involving tax preparation;
5  (3) an individual whose occupational license, permit, 
6 or registration has been revoked or refused by another 
7 state regulatory agency or the Internal Revenue Service for 
8 dishonest conduct or conduct involving tax preparation;
9  (4) a sole proprietorship, partnership, corporation, 
10 or other legal entity prohibited from engaging in tax 
11 return preparation activities under subsection (a) of this 
12 Section by reason of this subsection.
13 (d) The shareholders referred to in subsection (c) of this 
14Section are:
15  (1) if the corporation is publicly traded, a 
16 shareholder that owns more than 10% in value of the 
17 outstanding stock of the corporation; and
18  (2) if the corporation is not publicly traded, any 
19 shareholder.
20 (e) For purposes of subsections (c) and (d) of this 
21Section, "publicly traded" means traded on an established 
22securities market.
23 (f) If a sole proprietorship, partnership, corporation or 
24other legal entity must sever a relationship in order that it 
25may engage or may continue to engage in tax preparation 
26activities in compliance with this Section, the entity shall be 
 
 
HB4031- 10 -LRB099 09104 HLH 29297 b


1allowed a reasonable time to sever the relationship. Except as 
2otherwise provided in this Section, the time allowed to sever a 
3relationship shall not exceed 180 days after the Department 
4gives notice that the severance is required. The notice shall 
5include a statement affording an opportunity for hearing on the 
6issue of severance.
7 (g) If a hearing is requested under subsection (f) of this 
8Section, or if an appeal is taken of the Department's order 
9following hearing, the Department or court may allow additional 
10time for the affected parties to comply with any order 
11requiring severance.

12 Section 45. Renewal of licenses; restoration of lapsed 
13license; rules.
14 (a) Each licensed tax consultant or tax preparer shall 
15apply to the Department and pay the fee for a renewal of the 
16license. The application shall be made annually, on or before a 
17date established by the Department by rule. The application 
18shall be accompanied by evidence satisfactory to the Department 
19that the person applying for renewal of the license has 
20completed the continuing education required by Section 50.
21 (b) At least 30 days before the annual renewal date, the 
22Department shall notify the licensee that the annual renewal 
23application and fee are due.
24 (c) Any license that is not renewed within 15 days after 
25the annual renewal date shall lapse.
 
 
HB4031- 11 -LRB099 09104 HLH 29297 b


1 (d) The Department may restore any lapsed license upon 
2payment to the Department of all past unpaid renewal fees and a 
3fee for restoration of a lapsed license and upon proof of 
4compliance with any continuing education requirements that may 
5be adopted by the Department by rule.

6 Section 50. Continuing education requirement; waiver. 
7 (a) Except as provided in subsection (b) of this Section, 
8upon annual renewal of a tax preparer's or tax consultant's 
9license, each person licensed as a tax consultant or tax 
10preparer under this Act shall submit evidence satisfactory to 
11the Department that the person has completed at least 30 hours 
12of instruction or seminar in subjects related to income tax 
13preparation since the preceding license renewal date. If the 
14Department does not receive evidence that the continuing 
15education requirement has been completed by the applicant, the 
16Department shall not renew the applicant's active license.
17 (b) The Department may exempt a tax consultant or tax 
18preparer from the continuing education required by this Section 
19upon application showing evidence satisfactory to the 
20Department of inability to comply because of unusual or 
21extenuating circumstances. 

22 Section 55. Licenses to be displayed. Each tax consultant 
23and preparer shall display the evidence of licensing issued to 
24the tax consultant or tax preparer in accordance with rules 
 
 
HB4031- 12 -LRB099 09104 HLH 29297 b


1adopted by the Department.

2 Section 60. Use of title. An individual may not assume or 
3use the title or designation "tax consultant" unless the person 
4is licensed as a tax consultant under this Act.
5 A sole proprietorship, partnership, corporation, or other 
6legal entity may not assume or use the title or designation 
7"tax consultant" unless the entity is in compliance with 
8Section 40.

9 Section 65. Inactive status; application; renewal; 
10reactivation; revocation or suspension; prohibition; rules. 
11 (a) Whenever a tax consultant or tax preparer ceases to 
12engage in the preparation or in advising or assisting in the 
13preparation of personal income tax returns, the consultant or 
14preparer may apply to the Department for inactive status. A 
15license that is granted inactive status may be renewed upon 
16payment of the applicable license fee. No proof that the 
17continuing education required by Section 50 has been fulfilled 
18need be presented to the Department for renewal of an inactive 
19license.
20 (b) A license in inactive status may be reactivated upon 
21payment of a reactivation fee and upon proof of compliance with 
22such continuing education requirements as may be adopted by the 
23Department by rule.
24 (c) A license in inactive status may be revoked or 
 
 
HB4031- 13 -LRB099 09104 HLH 29297 b


1suspended by the Department when conditions exist under which 
2the Department would have been authorized to revoke or suspend 
3the license if it were active.
4 (d) No person whose license is inactive shall act as a tax 
5consultant or as a tax preparer.

6 Section 70. Fees. The Department shall by rule adopt fees 
7for:
8  (1) application for examination for a tax consultant's 
9 license;
10  (2) application for examination for a tax preparer's 
11 license;
12  (3) issuance or renewal of a tax consultant's license;
13  (4) issuance or renewal of a tax preparer's license;
14  (5) issuance or renewal of a tax consultant's inactive 
15 license;
16  (6) issuance or renewal of a tax preparer's inactive 
17 license;
18  (7) reactivation of a tax consultant's inactive 
19 license or reactivation of a tax preparer's inactive 
20 license;
21  (8) restoration of lapsed license;
22  (9) issuance or replacement of a duplicate license;
23  (10) issuance of a replacement or duplicate tax 
24 consultant certificate;
25  (11) registration or registration renewal for a sole 
 
 
HB4031- 14 -LRB099 09104 HLH 29297 b


1 proprietorship, partnership, corporation, or other legal 
2 entity;
3  (12) issuance or renewal of a combined tax consultant's 
4 or tax preparer's license and registration for a sole 
5 proprietorship, partnership, corporation, or other legal 
6 entity; eligibility for a combined license shall be 
7 determined under rules adopted by the Department; and
8  (13) annual registration of a branch office of a sole 
9 proprietorship, partnership, corporation or other legal 
10 entity.

11 Section 75. Tax consultant's records. 
12 (a) Except as provided in this Section, every person 
13licensed as a tax consultant shall keep records of all personal 
14income tax returns prepared by the person, or in the 
15preparation of which advice or assistance of the person has 
16been given. The records of the returns shall be kept for a 
17period of not less than 4 years after the date of the 
18preparation, advice, or assistance.
19 (b) If a tax consultant is employed by another tax 
20consultant, the records shall be kept by the employing tax 
21consultant.
22 (c) If tax consultant who has been designated as 
23responsible for the tax return preparation activities and 
24decisions of a partnership, corporation, or other legal entity 
25ceases to be connected with the partnership, corporation, or 
 
 
HB4031- 15 -LRB099 09104 HLH 29297 b


1other legal entity, the records shall be retained by the 
2partnership, corporation, or other legal entity.

3 Section 80. Secretary of State as agent for service of 
4process against nonresident; fee. 
5 (a) The acceptance by a nonresident of a license as tax 
6consultant or a tax preparer shall be considered equivalent to 
7the appointment by the nonresident of the Secretary of State as 
8attorney upon whom may be served any summons, process, or 
9pleading in any action or suit against the nonresident in any 
10court of this State, arising out of any business done by the 
11nonresident as a tax consultant or tax preparer in this State.
12 (b) The acceptance of a license shall be considered 
13equivalent to any agreement by the nonresident that any 
14summons, process, or pleading in the action or suit may be made 
15by leaving a copy thereof, with a fee of $2, with the Office of 
16the Secretary of State. Such service shall be sufficient and 
17valid personal service upon the defendant if notice of such 
18service and a copy of the summons, process, or pleading is sent 
19forthwith by registered mail or by certified mail with return 
20receipt by the plaintiff or the attorney of the plaintiff to 
21the defendant at the most recent address furnished to the 
22Department by the nonresident tax consultant or tax preparer or 
23to the last known address. An affidavit of the plaintiff or the 
24attorney of the plaintiff of the mailing shall be appended to 
25the summons, process, or pleading and entered as a part of the 
 
 
HB4031- 16 -LRB099 09104 HLH 29297 b


1return thereof. However, personal service outside of the State 
2in accordance with the statute relating to personal service of 
3summons outside of the State shall relieve the plaintiff from 
4such mailing requirement.
5 (c) Any summons received or provided in this Section shall 
6require the defendant to appear and answer the complaint within 
74 weeks after receipt thereof by the Secretary of State. The 
8court in which the action or suit is brought may order such 
9continuance as may be necessary to afford the defendant 
10reasonable opportunity to defend the action. The fee of $2 paid 
11by the plaintiff to the Secretary of State shall be taxed as 
12costs in favor of the plaintiff if the plaintiff prevails in 
13the action. The Secretary of State shall keep a record of each 
14summons, process, or pleading served upon the Secretary of 
15State under this Section, showing the day and hour of service.

16 Section 85. Continuing authority of the Department. The 
17lapsing, suspension, or revocation of a license by operation of 
18law or by order of the Department or by decision of a court of 
19law, or the voluntary surrender of a license by a licensee, 
20shall not deprive the Department of jurisdiction to proceed 
21with any investigation of or any action or disciplinary 
22proceeding against the licensee, or to revise or render null 
23and void an order suspending or revoking the license. 

24 Section 90. Disciplinary action; grounds. The Department 
 
 
HB4031- 17 -LRB099 09104 HLH 29297 b


1may refuse to issue or renew a tax consultant or preparer's 
2license, or may suspend or revoke a tax consultant or 
3preparer's license, or may reprimand any person licensed as a 
4tax consultant or tax preparer for:
5  (1) a violation of Section 10, Section 95, or Section 
6 105;
7  (2) failure to keep records as required under this Act;
8  (3) negligence or incompetence in tax consultant or tax 
9 preparer practice, or when acting in the capacity of a tax 
10 preparer or tax consultant in another state or under an 
11 exempt status, or in preparation of the personal income tax 
12 return for another state or the federal government;
13  (4) conviction of any crime, an essential element of 
14 which is dishonesty, fraud, or deception, under the laws of 
15 any state or of the United States;
16  (5) conviction of willful failure to pay any tax or 
17 estimated tax, file any tax return, keep records or supply 
18 information required under the tax laws of any state or of 
19 the United States, or conviction of the willful making, 
20 rendering, delivery, disclosure, signing or verifying of 
21 any false or fraudulent list, return, account, statement or 
22 other document, or of supplying any false or fraudulent 
23 information, required under the tax laws of any state or of 
24 the United States.
25  (6) failure to comply with continuing education 
26 requirements under this Act;
 
 
HB4031- 18 -LRB099 09104 HLH 29297 b


1  (7) violation of the code of professional conduct 
2 prescribed by the Department;
3  (8) failure to timely pay any civil penalty incurred 
4 under this Act; or
5  (9) cancellation, revocation, or refusal to renew by 
6 any State or federal agency, or entry of a consent order, 
7 stipulated agreement, or judgment related to, the person's 
8 or business's authority to practice law, to practice as a 
9 certified public accountant or a public accountant, or to 
10 practice under other regulatory law in any state, or to 
11 practice as an enrolled agent, if the grounds for the 
12 cancellation, revocation, refusal to renew, consent order, 
13 stipulated agreement, or judgment were related to income 
14 tax preparation or if dishonesty, fraud, or deception was 
15 involved.

16 Section 95. Prohibited acts.  It is unlawful for any person 
17to:
18  (1) obtain or attempt to obtain a license as a tax 
19 consultant or a tax preparer by any fraudulent 
20 representation;
21  (2) represent that the person is licensed as a tax 
22 consultant or a tax preparer if the person is not so 
23 licensed;
24  (3) present or attempt to use the license of another 
25 person;
 
 
HB4031- 19 -LRB099 09104 HLH 29297 b


1  (4) attempt to use a suspended, lapsed, or revoked 
2 license;
3  (5) falsely impersonate a licensee under this Act;
4  (6) engage in dishonesty, fraud, or deception relating 
5 to the preparation of personal income tax returns; and
6  (7) violate a position of trust, including a position 
7 of trust outside the licensee's professional practice.

8 Section 100. Exclusions. Sections 5 through 95 of this Act 
9do not apply to any of the following:
10  (1) Any full-time or part-time employee hired to fill a 
11 permanent position, who in connection with the duties as an 
12 employee, has the incidental duty of preparing income tax 
13 returns for the business of the employer only.
14  (2) Any attorney rendering services in the performance 
15 of the duties of an attorney.
16  (3) While acting as such, any fiduciary, or the regular 
17 employees thereof, acting on behalf of the fiduciary 
18 estate, the testator, trustor, grantor, or beneficiaries 
19 thereof.
20  (4) A certified public accountant who holds an active 
21 permit issued by any state, a public accountant, or a 
22 public accounting firm registered in any state.
23  (5) Any employee of a certified public accountant, 
24 public accountant or registered public accounting firm 
25 described in paragraph (4) of this Section.
 
 
HB4031- 20 -LRB099 09104 HLH 29297 b


1  (6) Any person employed by a local, State, or federal 
2 governmental agency but only in performance of official 
3 duties.

4 Section 105. Refund anticipation loan disclosures.
5 (a) Prior to a taxpayer's completion of an application for 
6a refund anticipation loan, the facilitator shall clearly 
7disclose in writing to the taxpayer on a form separate from the 
8application:
9  (1) a listing or table of refund anticipation loan fees 
10 and the annual percentage rates, as defined by the federal 
11 Truth in Lending Act, 15 U.S.C. 1601 et seq., charged by 
12 the facilitator or lender for 3 or more representative 
13 refund anticipation loan amounts; for each loan amount, the 
14 schedule shall list separately the amount of each fee and 
15 the amount of interest charged by the facilitator or lender 
16 and the total amount of fees and interest charged;
17  (2) that the refund anticipation loan is a loan and not 
18 the taxpayer's actual personal income tax refund;
19  (3) that electronic filing of the taxpayer's tax return 
20 is available without applying for a refund anticipation 
21 loan;
22  (4) the average time announced by the appropriate 
23 taxing authority within which the taxpayer can expect to 
24 receive a refund if the taxpayer does not obtain a refund 
25 anticipation loan and the taxpayer's return is filed:
 
 
HB4031- 21 -LRB099 09104 HLH 29297 b


1   (A) electronically and the refund is directly 
2 deposited in the taxpayer's bank account; or
3   (B) by mail and the refund is directly deposited in 
4 the taxpayer's bank account or mailed to the taxpayer;
5  (5) that the Internal Revenue Service does not 
6 guarantee that the full amount of the anticipated refund 
7 will be paid or a specific date on which the taxpayer will 
8 receive the refund;
9  (6) that the taxpayer is responsible for repayment of 
10 the loan and related fees in the event the tax refund is 
11 not paid or is not paid in full;
12  (7) the estimated time within which the proceeds of the 
13 loan will be paid to the taxpayer if the loan is approved; 
14 and
15  (8) the fees charged by the facilitator or lender if 
16 the refund anticipation loan is not approved.
17 (b) Prior to entering into a refund anticipation loan 
18agreement, the facilitator shall clearly disclose to the 
19taxpayer:
20  (1) the estimated total fees for the loan; and
21  (2) the estimated annual percentage rate, as defined by 
22 the federal Truth in Lending Act, for the loan.


23 Section 999. Effective date. This Act takes effect upon 
24becoming law.