Tax Refund Protection Act Introduced to Combat Predatory Tax Preparers

Congresswoman Suzanne Bonamici (D-OR) and Senator Cory Booker (D-NJ) have introduced bicameral legislation to safeguard American consumers from tax refund scams perpetrated by unscrupulous tax preparers. The Tax Refund Protection Act aims to establish licensing, fees, and certification requirements for tax return preparers to curb unethical practices. Millions of Americans rely on tax preparers, and this bill aims to protect them from predatory practices that involve skimming money from tax returns, overcharging through hidden fees, or redirecting refunds into preparers' accounts.

Key Takeaways:

• The Tax Refund Protection Act would grant authority to the Department of the Treasury to establish licensing, fees, and certification for tax return preparers.
• The legislation aims to protect millions of Americans who rely on tax refunds to cover essential expenses.
• Tax preparers would be required to provide a disclosure statement outlining fees for preparing a tax return.
• Taxpayers would be directed to where they can find information about when they can expect to receive their refunds.
• The bill would also disclose potential additional fees associated with a refund anticipation check.
• The National Taxpayer Advocate's recommendation to ensure accountability when tax preparers misuse confidential taxpayer information would be incorporated.
• The legislation is endorsed by Prosperity Now and has received cosponsorship from Representative Bennie Thompson (MS-02).

Statistics:

• Millions of Americans rely on tax preparers each year.
• Every year, far too many Americans, especially those who are low-income and underserved, file their taxes only to receive lower than expected returns due to unfair and undisclosed fees and rates.
• The Tax Refund Protection Act aims to keep more hard-working taxpayers' money in their pockets by requiring greater transparency and accountability from tax preparers.

Sources:

• United States House of Representatives -- Representative Suzanne Bonamici (1st District Oregon)
• Senator Cory Booker (D-NJ)
• Prosperity Now