Today's Law As Amended

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AB-1140 Tax preparers: disclosures. (2019-2020)



SECTION 1.

 Section 22252.2 is added to the Business and Professions Code, to read:

22252.2.
 (a) Before preparing a tax return for a client, a tax preparer shall provide a written disclosure to the client that contains all of the following information:
(1) The total amount of all costs and fees being charged by the tax preparer, which shall be itemized and presented in a table format.
(2) A statement that an individual with income below sixty-six thousand dollars ($66,000) may be eligible for free, in-person tax preparation services through the Internal Revenue Service Volunteer Income Tax Assistance program or online through free tax preparation software. The statement shall identify the Internal Revenue Service’s internet websites where an individual may find additional information on each program. If the income eligibility threshold for those programs changes in subsequent years, the disclosure shall reflect the updated amount for the current tax year.
(3) The tax preparer’s federal preparer tax identification number.
(b) The disclosures required by this section shall be on a single sheet of paper and written in not less than 20-point type, and shall be signed and dated by the client. The tax preparer shall retain the document for at least three years.
(c) The written disclosures required to be provided in this section shall be made available in English and the five languages listed in Section 1632 of the Civil Code.
(d) The Franchise Tax Board shall develop a model disclosure form, which shall be made available on the Franchise Tax Board’s internet website.
(e) (1) A violation of this section is not subject to subdivision (b) of Section 22256 or Section 22257. A tax preparer who violates this section is subject to the following penalties:
(A) For a first violation, the tax preparer is subject to a warning by the Franchise Tax Board.
(B) For a second or subsequent violation, the tax preparer is subject to a fine of seven hundred fifty dollars ($750) and discipline by the Franchise Tax Board consistent with the provisions of this act. Moneys collected by the Franchise Tax Board pursuant to this section shall, upon appropriation by the Legislature, be used to fund the federal Volunteer Income Tax Assistance (VITA) program and Earned Income Tax Credit outreach efforts.
(2) The Franchise Tax Board shall notify the council of a violation of this section.