Tax Refund Protection Act

HR 2702, the Tax Refund Protection Act, requires tax return preparers to obtain licenses or certifications demonstrating competency and good character before providing services. The bill establishes penalties - including fines up to $1,000 per violation - for preparers who fail to disclose key details about refund anticipation loans (fees paid to receive refunds early) or engage in misconduct like fraud. It mandates clear disclosures to taxpayers about preparer fees, average refund timelines, and risks of refund anticipation arrangements, such as potential debt if refunds are delayed or smaller than expected. The law directly affects tax preparers and taxpayers by increasing oversight of preparer conduct and improving transparency around refund-related fees.