[HISTORY: Adopted by the Common Council of the City of Buffalo 1-20-2009, effective 2-2-2009. Amendments
noted where applicable.]
A.
For the purposes of this chapter the term "tax preparer" or "preparer"
means a person, partnership, corporation or other business entity
that, for valuable consideration, advises or assists or offers to
advise or assist in the preparation of income tax returns for another.
B.
For the purposes of this chapter, the term "refund anticipation loan"
means any loan a taxpayer may receive against his or her anticipated
income tax refund.
A.
A tax preparer who is required, pursuant to federal, state or local
law or regulation, to sign income tax returns as a preparer shall
prominently and conspicuously post on the business premises an identification
and qualification statement. The statement shall include, but is not
limited to, the name of the tax preparer, an address and phone number
at which the tax preparer can be contacted throughout the year, and
a statement of any qualifications possessed by the tax preparer, which
may include a statement of satisfactory completion of an educational
or training program in income tax law, theory or practice by the preparer.
B.
The tax preparer shall provide the customer with a receipt containing
an address and phone number at which the preparer can be contacted
throughout the year.
No tax preparer shall intentionally misstate or misrepresent
any information relating to his or her education, training or experience
on an identification and qualification statement. A tax preparer shall
maintain records to substantiate all of the information contained
on such a statement; provided, however, that an affidavit signed by
the tax preparer indicating that the information contained on a statement
is true shall be sufficient to substantiate any information if other
records are not available. Such records and/or affidavit shall be
kept on file on the business premises and shall be presented on demand
for inspection by the Buffalo Police Department.
A.
Any tax preparer who advertises the availability of a refund anticipation
loan may not directly or indirectly represent such a loan as a refund.
Any advertisement which mentions a refund anticipation loan must state
conspicuously that it is a loan and that a fee or interest will be
charged by the lending institution. The advertisement must also disclose
the name of the lending institution.
B.
Before any taxpayer enters into a refund anticipation loan, the tax
preparer facilitating such loan shall provide the following disclosure
to the taxpayer, in writing, in English and Spanish, in at least fourteen-point
type. In the event that the taxpayer does not understand English or
Spanish, the tax preparer shall also provide a point-by-point oral
explanation of the following required disclosure in a language understood
by the taxpayer:
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YOU ARE NOT REQUIRED TO ENTER INTO THIS REFUND ANTICIPATION
LOAN AGREEMENT MERELY BECAUSE YOU HAVE RECEIVED THIS INFORMATION.
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IF YOU DO SIGN A CONTRACT FOR A REFUND ANTICIPATION LOAN, YOU
WILL BE TAKING OUT A LOAN. YOU WILL BE RESPONSIBLE FOR REPAYMENT OF
THE ENTIRE LOAN AMOUNT AND ALL RELATED COSTS AND FEES, REGARDLESS
OF HOW MUCH MONEY YOU ACTUALLY RECEIVE IN YOUR TAX REFUND.
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IF YOU DO NOT TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU ARE
ELIGIBLE TO RECEIVE A GROSS TAX REFUND OF APPROXIMATELY $ (insert
amount).
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IF YOU DO TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU WILL BE
RESPONSIBLE TO PAY $ (insert amount) IN FEES FOR THE LOAN. AFTER THESE
FEES ARE PAID, YOU WILL RECEIVE APPROXIMATELY $ (insert amount) AS
YOUR LOAN.
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THE ESTIMATED ANNUAL PERCENTAGE RATE OF YOUR REFUND ANTICIPATION
LOAN IS (insert amount)%. THIS IS BASED ON THE ACTUAL AMOUNT OF TIME
YOU WILL BE LENT MONEY THROUGH THIS REFUND ANTICIPATION LOAN.
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IF YOU DO TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU CAN EXPECT
TO RECEIVE YOUR LOAN WITHIN APPROXIMATELY TWO BUSINESS DAYS OF (insert
date).
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IF YOU DO NOT TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU CAN
STILL RECEIVE YOUR TAX REFUND QUICKLY. IF YOU FILE YOUR TAX RETURN
ELECTRONICALLY AND RECEIVE YOUR TAX REFUND THROUGH THE MAIL, YOU CAN
EXPECT TO RECEIVE YOUR REFUND WITHIN APPROXIMATELY TWO BUSINESS DAYS
OF [insert date]. IF YOU FILE YOUR TAX RETURN ELECTRONICALLY AND HAVE
YOUR TAX REFUND DIRECTLY DEPOSITED INTO A BANK ACCOUNT, YOU CAN EXPECT
TO RECEIVE YOUR REFUND WITHIN APPROXIMATELY TWO BUSINESS DAYS OF (insert
date).
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C.
It shall be the obligation of the tax preparer to complete the required
disclosure accurately with all relevant information for each taxpayer,
to provide the required point-by-point oral explanation when necessary,
and to ensure that the completed disclosure form is signed by the
taxpayer before he or she enters into a refund anticipation loan.
Apart from § 431-2 and the accompanying penalties as listed in § 431-6, the provisions of this chapter shall not apply to:
A.
An officer or employee of a corporation or business enterprise who,
in his or her capacity as such, advises or assists in the preparation
of income tax returns relating to such corporation or business enterprise.
B.
An attorney at law who advises or assists in the preparation of income
tax returns in the practice of law and the employees thereof.
C.
A fiduciary and the employees thereof who advise or assist in the
preparation of income tax returns on behalf of the fiduciary estate,
the testator, trustee, grantor or beneficiaries thereof.
D.
A certified public accountant and the employees thereof.
E.
A public accountant licensed pursuant to the education law and the
employees thereof.
F.
An employee of a governmental unit, agency or instrumentality who
advises or assists in the preparation of income tax returns in the
performance of his or her official duties.
Any person, partnership, corporation or other business entity
who violates any provision of this chapter or any of the regulations
promulgated hereunder shall be liable for a civil penalty of $250
for the first violation and for each succeeding violation a civil
penalty of $500.
