State Requirements for Preparers Which Offer Tax Refund Loan Products

There are 20 states that have  regulations for preparers who offer tax refund loan products with the following  types of requirements:

     
  • Five  States require a preparer to register if they offer loan products. In Oregon  and New York if the preparer is registered as a tax preparer they meet the registration  requirement. Preparers also must follow the State disclosure and other  requirements provided for in each State’s regulations for loan providers.
     
  • Eleven  States require that preparers follow State disclosure and other requirements  provided for in each State’s regulations for loan providers.

Here are the  details for each State in each of the two categories of State requirements;

 States that require preparers to  register

 North Carolina
 The North Carolina Refund Anticipation Loan Act explains the registration  requirements and other requirements for a business that offers RALs.

Must go to the North Carolina  Commissioner of Banks – Refund Anticipation Loan Facilitators  Overview website and  from there you can link to the online application and get the latest reporting  requirements and due dates.

Texas
 These companies facilitate loans against  anticipated tax refunds. They offer rapid tax refunds for people who can’t  wait. The service allows people to “Get your tax refund today rather than  later.”  They also:

     
  • Must be engaged in business of preparing  tax returns
    •  
  • Must display and discuss fee schedule(s)
    •  
  • Often use a federal pre-emption structure

Must register and pay fee on the Texas  OCCC – Refund  Anticipation Loan (ALECS) website.

Washington
 Washington businesses that offer tax refund anticipation loans (RALs) must  register with the Department of Financial Institutions (DFI).

Must fill out application and mail to State of Washington with the  applicable fee.

The application is available on Washington State  DFI – Tax Refund Anticipation Loan Facilitators website.

New York
 The requirements for tax preparers  and facilitators are contained in the New York Consumer Bill of Rights  Concerning Tax Preparers.

To register all tax return preparers  and loan facilitators must register on the New York State tax preparer registration page.

Oregon
 A person may not be a facilitator of  a RAL without being licensed as a tax preparer or consultant with Oregon. This  is stated on the Oregon website under statutes on the Chapter 73 Tax Consultants and  Preparers.

No additional registration required  if the person is already licensed as a tax preparer in Oregon.

States that require disclosures and other requirements of preparers

Arkansas
 Requirements are detailed in the Arkansas Code Title 4 Subtitle 7  Chapter 116 Refund Anticipation Loan Act.

California
 Requirements are detailed in California  Business and Professions Code Section 22253.1.

Colorado
 Requirements are contained in the Colorado Revised Statute Title 5  Consumer Credit Code – Disclosures Required for RAL facilitators

Connecticut
 Requirements are detailed in Chapter 743ee Refund Anticipation  Loans on the State  of Connecticut website.

Illinois
 Requirements are contained in the Tax Refund Anticipation Loan Act on the Illinois General Assembly  website.

Louisiana
 Requirements are on the Louisiana website on the  legislature - RS 9:3579.4 page

Maine
 Requirements are on the Maine website  under: Title 9-A: Maine Consumer Credit Code: Article 10: Part 3

Maryland
 Disclosure requirements are on the  Maryland website on the HB1206: Commercial Law - Consumer  Protection - Refund Anticipation Loans and Checks page.

Michigan
 Requirements are on the Michigan  legislative website on the Refund Anticipation Loan Act page.

Minnesota
 Requirements are contained in the  Minnesota Statute governing Tax Preparation Services on the Minnesota Office of the  Revisor of Statutes website.

New Jersey
 Requirements are detailed in New Jersey Statute Title 17 Section  17:11 D-3 Refund Anticipation Loans.

Virginia
 Requirements are on the Virginia website under: Title  62; Chapter 25 – Refund Anticipation Loans – Advertising; posting RAL fee schedule; and disclosures

Nevada
 Requirements are on the Nevada  website on the Chapter 604B – Refund Anticipation  Loans page.

Tennessee
 Requirements are detailed in Tennessee Code Title 62 Chapter 29  Part 2 Refund Anticipation Loans (Disclosures and Prohibited Activities)

Wisconsin
 Disclosure requirements are detailed  in Wisconsin Statute 422.310 Refund  Anticipation Loans.

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