Sec. 3. Regulation of refund anticipation payment instruments
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Subtitle B of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5511 et seq. ) is amended by adding at the end the following: The Bureau shall regulate refund anticipation payment arrangements. The Bureau shall, by rule, require tax return preparers to provide a disclosure statement to a consumer that shall contain statements— identifying the amount of fees for executing a refund anticipation payment arrangement; describing, in the case of a refund anticipation payment arrangement involving a depository account not controlled by the consumer, the difference in days between the average amount of time by which a consumer receives the tax refund (in whole or in part) 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 authority; that a refund anticipation payment arrangement is not necessary to receive a tax refund; and that, 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 arrangement, the consumer may be responsible for paying any fees and interest associated with a refund anticipation payment arrangement.
The Bureau shall promulgate regulations that, to the extent practicable, require tax return preparers that enter into a refund anticipation payment arrangement to comply with section 128 of the Truth in Lending Act ( 15 U.S.C. 1638 ) to the same extent as a creditor making a consumer credit transaction other than under an open end credit plan. In this section: The term refund anticipation payment arrangement means an arrangement under which, in exchange for Federal income tax preparation services, a consumer agrees to pay a fee or interest upon receipt of the consumer’s tax refund to a tax return preparer, lender, or other affiliated lender by— requesting the Federal Government to deposit such tax refund, in whole or in part, directly into a depository account designated by either the consumer or the tax return preparer, lender, or other affiliated lender; or directly paying the fee or interest to the tax return preparer, lender, or other affiliated lender.
The term tax return preparer means a tax return preparer (as defined in section 7701(a) of the Internal Revenue Code of 1986) who is not subject to regulation under section 330 of title 31, United States Code. . The table of contents of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 et seq. ) is amended by inserting after the item relating to section 1029A the following: Sec. 1029B. Regulation of refund anticipation payment arrangements. . Section 1027(d) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5517(d) ) is amended by striking paragraph
(1)and inserting the following: Except as permitted in paragraph (2), the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority over any person that is a certified public accountant, permitted to practice as a certified public accounting firm, or certified or licensed for such purpose by a State, or any individual who is employed by or holds an ownership interest with respect to a person described in this subparagraph, when such person is performing or offering to perform— customary and usual accounting activities, including the provision of accounting, tax (except as related to tax return preparers pursuant to section 1029B), advisory, or other services that are subject to the regulatory authority of a State board of accountancy or a Federal authority; or other services that are incidental to such customary and usual accounting activities, to the extent that such incidental services are not offered or provided— by the person separate and apart from such customary and usual accounting activities; or to consumers who are not receiving such customary and usual accounting activities. . Section 1027(d) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5517(d) ) is amended— in the subsection heading, by striking ; and and tax preparers in paragraph (2)— in subparagraph (A)— by striking paragraph (1)(A) or (1)(B) and inserting that paragraph ; and by striking paragraph (1)(A) each place it appears and inserting paragraph
(1); in subparagraph (C)— by striking For purposes of subparagraphs
(A)and (B), a person described in paragraph (1)(A) and inserting A person described in paragraph
(1); and by striking clause
(i)or
(ii)of paragraph (1)(A) and inserting subparagraph
(A)or
(B)of paragraph
(1); and in subparagraph (D), by striking paragraph (1)(A) or (1)(B) and inserting that paragraph .
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Sec. 3
Regulation of refund anticipation payment instruments
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