* Editor's note – Coun. J. 6-10-96, p. 23652, repealed former Ch. 4-44, which pertained to milk and milk products.
4-44-010 Definitions.
4-44-020 Consumer bill of rights regarding tax preparation services.
4-44-030 Mandatory disclosures.
4-44-032 Written estimate of total charges.
4-44-035 Postings of required information.
4-44-040 Prohibited activity.
4-44-050 Joint and several liability.
4-44-060 Enforcement.
4-44-070 Fines.
As used in this chapter, unless the context indicates otherwise:
"Assisted direct deposit" means a mechanism or agreement through which a consumer's individual income tax refund is deposited in a bank account other than the consumer's bank account, and then the remaining portion of the refund, minus fees, is deposited in the consumer's own bank account.
"Consumer" means a person for whom an individual income tax return is being prepared by a tax preparer; or (ii) who, in contemplation of retaining the tax preparer for tax preparation services, seeks advice or assistance from a tax preparer for tax preparation services.
"Refund anticipation check" means a check or other payment mechanism representing the proceeds of the consumer's individual income tax refund which was issued by a depository institution or other person that received a direct deposit of the consumer's individual income tax refund and for which the consumer must pay a fee or other consideration.
"Refund anticipation loan" means any loan a consumer may receive against his anticipated individual income tax refund.
"Refund settlement product" means assisted direct deposit, a refund anticipation check, a refund anticipation loan, or other similar mechanism, agreement, or transaction that allows a consumer to receive an advancement of money against an anticipated individual income tax refund from a person other than state or federal government, or allows another person to collect fees from the proceeds of the consumer's individual income tax refund.
"Tax preparation services" means advice or assistance in the preparation of individual income tax returns.
"Tax preparer" means a person who, for a fee, provides or who holds himself out as providing tax preparation services. A "tax preparer" shall not include:
1. an attorney-at-law, and the employees of an attorney-at-law, who is a tax preparer;
2. a certified public accountant, and the employees of a certified public accountant, who is a tax preparer;
3. an officer or employee of a federal, state, or local governmental agency who provides tax preparation services in the scope of his employment; or
4. an administrator, conservator, guardian, executor, trustee, receiver or other representative appointed by the court who provides tax preparation services in the scope of that appointment.
"Writing" means information legibly recorded in either paper or electronic form.
(Added Coun. J. 3-14-12, p. 22586, § 1; Amend Coun. J. 12-9-15, p. 15481, § 4)
The department shall produce a document in English and Spanish known as a "Consumer Bill of Rights Regarding Tax Preparation Services". The document shall be written in plain language, published on the department's website, and shall contain the following information:
a) a detailed explanation of commonly offered tax preparation services;
b) a statement that a consumer has the right to file a complaint with the department concerning a tax preparer;
c) information on how to file a complaint with the department concerning a tax preparer;
d) a statement that a consumer shall not be charged any fee or costs without a written contract and that the consumer will receive an estimate of charges prior to entering into any contract;
e) a statement that a tax preparer, who individually or in conjunction with another, makes or offers to make a refund anticipation loan is required to make certain disclosures pursuant to Section 10 of the Tax Refund Anticipation Loan Disclosure Act, 815 ILCS 177/10; and
f) a statement that a consumer is not required to utilize a refund settlement product in order to receive tax preparation services from the tax preparer.
(Added Coun. J. 3-14-12, p. 22586, § 1; Amend Coun. J. 12-9-15, p. 15481, § 4)
(a) At the time a consumer indicates that he is contemplating retaining the tax preparer for tax preparation services, and prior to entering into a contract with such consumer for tax preparation services, a tax preparer must provide the consumer with the following information, in writing:
1. a copy of the Consumer Bill of Rights Regarding Tax Preparation Services, which the department shall make available on-line for the tax preparer to print and give to the consumer;
2. a Disclosure Form that contains the following information:
(A) a written list, description, and price of the tax preparation services offered by the tax preparer;
(B) a written list, description, and price of all miscellaneous fees associated with tax preparation services, including filing fees and processing fees;
(C) a statement that prior to entering into any contract, the tax preparer shall provide the consumer with a written estimate of the total charge based upon the tax preparation services selected by the consumer;
(D) a written estimate of the period of time the consumer can reasonably expect to wait for his tax refund; and
(E) a certification from the tax preparer indicating that the tax preparer has reviewed each disclosure with the consumer and that the tax preparer has verbally reviewed all the required disclosures with the consumer.
(b) The commissioner may prescribe, by rule, a model disclosure form to facilitate compliance with the disclosure requirements of this section. Nothing in this subsection shall be construed as requiring a tax preparer to use any such model form. A tax preparer shall be deemed to be in compliance with the disclosure provisions if the tax preparer uses the appropriate uniform model disclosure form prescribed by the commissioner.
If a tax preparer does not use the model disclosure form, prior to any tax preparation services being rendered to consumers, the tax preparer shall submit a proposed disclosure form to the commissioner in a form and format prescribed by the commissioner in rules. Any changes to the approved disclosure form shall be submitted to the commissioner prior to the disclosure form being provided to the consumer. Within 14 days of submission of the proposed disclosure form, or any changes thereto, the commissioner shall either approve or disapprove the disclosure form or changes thereto.
(c) A tax preparer shall not enter into a contract for tax preparation services until after the tax preparer verbally reviewing each and every disclosure contained on the Disclosure Form with the consumer and the consumer certifying to such review on the Disclosure Form.
(d) The tax preparer must offer the consumer the choice between English and Spanish versions of the Disclosure Form and must verbally review each and every disclosure in English or Spanish as appropriate. If the consumer does not understand English or Spanish, the tax preparer must allow the consumer an opportunity to secure the services of a translator prior to continuing with the tax preparation services.
(Added Coun. J. 3-14-12, p. 22586, § 1; Amend Coun. J. 12-9-15, p. 15481, § 4)
Prior to entering into any contract or charging any fee for tax preparation services, a tax preparer shall provide a written estimate of the total charge, including any fees or costs, a consumer will incur based upon the tax preparation services selected by the consumer.
A tax preparer shall not enter into any contract with a consumer, or charge the consumer any fee, prior to the tax preparer reviewing the written estimated total charges with the consumer.
No consumer shall be liable to a tax preparer for any charge or cost for tax preparation services without a written contract.
(Added Coun. J. 12-9-15, p. 15481, § 4)
A tax preparer shall post the following information, in a form and format prescribed by rules, in a conspicuous location on the premises where the tax preparer renders any tax preparation services:
(a) the Consumer Bill of Rights regarding tax preparation services;
(b) a written description and price of the tax preparation services offered by the tax preparer; and
(c) a written description and price of all miscellaneous fees associated with the tax preparation services, including filing and processing fees.
The information shall be posted in English and Spanish.
(Added Coun. J. 12-9-15, p. 15481, § 4)
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