1.1.................... moves to amend H.F. No. 722 as follows:
1.2Page 2, line 26, before period insert "
and any other fees. A refund anticipation
1.3check includes a refund transfer"
1.4Page 3, delete line 21
1.5Page 3, line 22, delete "
(16)" and insert "
(15)"
1.6Page 3, line 23, delete "
(17)" and insert "
(16)"
1.7Page 3, line 25, delete "
(18)" and insert "
(17)"
1.8Page 3, line 26, delete "
(19)" and insert "
(18)"
1.9Page 4, line 6, delete "
(20)" and insert "
(19)"
1.10Page 4, line 16, before the period insert "
associated with the refund anticipation
1.11loan or refund anticipation check"
1.12Page 4, line 17, strike "; refund anticipation loans" and delete "
and checks" and
1.13strike "If" and insert "
Before or at the same time"
1.14Page 4, line 19, to page 5, line 9, delete the new language and strike the old language
1.15Page 5, before line 10 insert:
1.16"
must make the disclosures in subdivision 4a. Before or at the same time a tax
1.17preparer offers or facilitates a refund anticipation check or refund transfer, the tax preparer
1.18must make the disclosures in subdivision 4b.
1.19(b) The disclosures must be provided to a client in a written notice on a single sheet
1.20of paper, separate from any other document or writing.
1.21(c) All required statements must be in capital and small font type fonts, in a
1.22minimum of 14-point type, with at least a double space between each statement.
1.23(d) The notice must be signed and dated by the tax preparer and the client.
1.24(e) All required disclosures, notices, and statements must be provided in the client's
1.25primary language, if the tax preparer advertises in that language.
1.26 Subd. 4a. Refund anticipation loan disclosures. The disclosure required under
1.27subdivision 4 for a refund anticipation loan must contain:
2.1(1) a legend, centered at the top on the single sheet of paper, in bold, capital letters,
2.2and in 28-point type stating "NOTICE";
2.3(2) the following verbatim statements:
2.4(i) "This is a loan. This is not your refund. The annual percentage rate (APR), based
2.5on the estimated payment period, is (fill in the estimated APR)."
2.6(ii) "Your refund will be used to repay the loan. As a result, the amount of your
2.7refund will be reduced by (fill in appropriate dollar amount) for fees, interest, and other
2.8charges."
2.9(iii) "You have the right to cancel this transaction by returning the loan check or the
2.10amount of the loan in cash within one business day after you get the loan."
2.11(iv) "You can get your refund in about two weeks if you file your return electronically
2.12and have the Internal Revenue Service send your refund to your own bank account."; and
2.13(3) if the client is subject to additional interest when a refund is delayed, the
2.14following verbatim statement must also be included in the notice: "If you choose to take
2.15this loan and your refund is delayed, you may have to pay."
2.16 Subd. 4b. Refund anticipation check disclosures. (a) The disclosure required
2.17under subdivision 4 for a refund anticipation check must contain:
2.18(1) a legend, centered at the top on the single sheet of paper, in bold, capital letters,
2.19and in 28-point type stating "NOTICE";
2.20(2) the following verbatim statements:
2.21(i) "You do not have to purchase a refund anticipation check (RAC) to get your
2.22tax refund."
2.23(ii) "Generally the IRS can direct deposit your income tax refund to your personal
2.24bank account within 8 to 15 days after the IRS accepts your tax return for processing."
2.25(iii) "If you choose to purchase a RAC, your tax return funds will generally be
2.26made available to you within 8 to 15 days."
2.27(iv) "A RAC is not a loan."
2.28(v) "The cost of the RAC is $ (fill in dollar amount)."
2.29(vi) "You can either pay for your RAC now or you can have it withheld from
2.30your refund."
2.31(vii) "The cost of your tax return is not any more or any less if you purchase a RAC."
2.32(b) A tax preparer offering a refund anticipation check that uses a different product
2.33name, including but not limited to refund transfer, must substitute the product name for
2.34"RAC" in all the statements required under this subdivision."
2.35Page 5, line 12, strike "and"
2.36Page 5, line 13, strike the period and insert "
; and"
3.1Page 5, after line 13 insert:
3.2"
(3) each fee associated with the provision of a refund anticipation check."
3.3Page 5, line 26, delete "
in cash"
3.4Page 6, line 9, strike "to" and insert "
, 3a, 4, 4a, 4b,"
3.5Page 6, line 13, strike "to" and insert "
, 3a, 4, 4a, 4b,"
3.6Page 6, line 16, strike "to" and insert "
, 3a, 4, 4a, 4b,"
3.7Renumber the sections in sequence and correct the internal references
3.8Amend the title accordingly