Bill Text: NJ A4176 | 2012-2013 | Regular Session | Introduced
Bill Title: Prohibits tax return preparers from charging separately itemized fees for electronically filing State individual income tax returns.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-06-06 - Introduced, Referred to Assembly Budget Committee [A4176 Detail]
Download: New_Jersey-2012-A4176-Introduced.html
Sponsored by:
Assemblyman TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Prohibits tax return preparers from charging separately itemized fees for electronically filing State individual income tax returns.
CURRENT VERSION OF TEXT
As introduced.
An Act prohibiting tax return preparers from charging separately itemized fees for electronically filing State individual income tax returns, amending P.L.2007, c.258.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2007, c.258 (C.17:11D-2) is amended to read as follows:
2. No tax preparer shall:
a. Without reasonable cause, fail to promptly, diligently and without unreasonable delay complete a client's tax return;
b. Obtain the signature of a client to a tax return or authorizing document containing blank entries to be completed after the document has been signed;
c. Fail to sign a client's tax return as the tax preparer;
d. Fail or refuse to give a client a copy of any document requiring the client's signature within a reasonable time after the client signs the document;
e. Fail to retain for at least four years a copy of individual income tax returns;
f. Fail to maintain a confidential relationship with a client or former client;
g. Fail to take reasonable measures to maintain the confidentiality of information or documents provided by the client;
h. Produce, authorize, publish, disseminate, circulate, or cause to make any false, deceptive, or misleading statement or representation relating to or in connection with the offering or provision of tax preparation services;
i. Require a client to enter into a refund anticipation loan in order to complete a tax return;
j. Claim, or make representations to a client concerning, credits or deductions for which the tax preparer knows or reasonably should know the client does not qualify;
k. Charge, offer to accept, or accept a fee based on a percentage of an anticipated refund in exchange for tax preparation services; [or]
l. Withhold or decline to return to a client documentation provided by the client for use in preparing a client's tax return; or
m. Charge a separately itemized fee for the electronic filing of a State individual income tax return.
(cf: P.L.2007, c.258, s.2)
2. Section 4 of P.L.2007, c.258 (C.17:11D-4) is amended to read as follows:
4. A tax preparer shall provide an itemized statement of service charges to the client, including, but not limited to, charges for each of the following:
a. tax return preparation;
b. [electronic filing of a tax return] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill); and
c. providing or facilitating a refund anticipation loan.
(cf: P.L.2007, c.258, s.4)
3. Section 6 of P.L.2007, c.258 (C.17:11D-6) is amended to read as follows:
6. [The] Except as provided in subsection i. of this section, the provisions of [this act] P.L.2007, c.258 (C.17:11D-1 et seq.) shall not apply to:
a. a tax preparer providing tax preparation services to less than six clients per calendar year;
b. an individual providing tax preparation services for a spouse, parent, grandparent, child or sibling;
c. an employee who, as part of the regular clerical duties of his or her employment, prepares an employer's income, sales or payroll tax returns;
d. any fiduciary, or the regular employee of a fiduciary, while acting on behalf of the fiduciary estate, the testator, trustor, grantor, or their beneficiaries;
e. an attorney admitted to practice law in New Jersey;
f. a certified public accountant or public accountant qualified to practice in New Jersey;
g. an enrolled agent who has passed the special enrollment examination administered by the Internal Revenue Service; or
h. the Internal Revenue Service's Volunteer Income Tax Assistance (VITA) Program, provided that it receives no compensation for or in connection with any services performed for or products purchased by the taxpayer.
i. This section shall not exempt a tax preparer from complying with the prohibition on charges imposed as a separately itemized fee for the electronic filing of a State individual income tax return pursuant to subsection m. of section 2 of P.L.2007, c.258 (C.17:11D-2).
(cf: P.L.2007, c.258, s.6)
4. This act shall take effect immediately and apply to State individual income tax returns due on the first day of the fourth month beginning after the date of enactment.
STATEMENT
This bill prohibits tax return preparers from charging separately itemized fees for electronically filing State individual income tax returns. The purpose of this bill is to remove the imposition of separately itemized charges as an impediment to increased electronic filing of State individual income tax returns.
The bill is scheduled to apply to State individual income tax returns due on the first day of the fourth month after the date of enactment. Conceptually, the bill is based on a 2010 enactment of the New York legislature and a bill pending before the Massachusetts's General Court. See NY CLS Tax s.34 and H.3451 of the 188th General Court.
