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Stronger Taxpayer Protection: Regulating Preparers and Refund Anticipation Loans.

This Act enhances consumer protection by granting the IRS authority to license, certify, and penalize tax return preparers for incompetence or fraud. Crucially, it mandates clear disclosure of all fees and risks associated with "Refund Anticipation Payment Arrangements" (RAPA). This ensures citizens can make informed financial decisions and avoid being misled into costly short-term loans.
Key points
IRS gains power to license and certify tax preparers, ensuring they meet standards of competency and good character.
Mandatory disclosure of all preparation fees and the full cost/risk of refund anticipation loans (RAPA).
Preparers must inform clients that RAPA is optional and provide information on standard IRS refund times.
Penalties up to $1,000 for preparers who fail to provide required financial disclosures to clients.
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Expired
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Additional Information
Print number: 118_S_1209
Sponsor: Sen. Booker, Cory A. [D-NJ]
Process start date: 2023-04-19
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tax Refund Protection Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1209.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-04-19.

What are the main provisions?

Key points include:

  • IRS gains power to license and certify tax preparers, ensuring they meet standards of competency and good character.
  • Mandatory disclosure of all preparation fees and the full cost/risk of refund anticipation loans (RAPA).
  • Preparers must inform clients that RAPA is optional and provide information on standard IRS refund times.
  • Penalties up to $1,000 for preparers who fail to provide required financial disclosures to clients.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Booker, Cory A. [D-NJ].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Economy