AB 290

Under current law, a tax preparer is subject to certain privacy requirements

regarding information obtained in preparing a client's tax return. Current law

defines "tax preparer" as a person who, for compensation, prepares an income tax

return of another person, but does not include: 1) a licensed certified public

accountant; 2) a licensed attorney; or 3) an employee of a corporate trustee, bank, or

trust company, who is authorized to provide fiduciary services. Current law also

requires a creditor to make specified disclosures before making a "refund

anticipation loan" to a customer, which is defined as an agreement under which the

creditor arranges to be repaid for a loan directly from the proceeds of the customer's

income tax refund.

This bill requires the Department of Revenue (DOR) to promulgate rules

prohibiting a person from acting as a tax preparer without a license issued by DOR.

The bill's definition of "tax preparer" is the same as under current law, except it

includes a licensed certified public accountant or attorney. The rules must specify

license qualifications, establish a license fee, and require periodic renewal of

licenses. In addition, the rules may impose other requirements and procedures that

DOR determines are necessary. The rules must also prohibit a person issued a

license from making a refund anticipation loan, as defined under current law, or

acting in any manner to facilitate the making of such a loan by an in-state or

out-of-state creditor.