Tax Refund Protection Act

The Tax Refund Protection Act requires tax return preparers to be licensed and certified, with standards for character, competence, and integrity. It mandates that preparers clearly disclose key details about refund anticipation payment arrangements (services that advance a tax refund before the government pays it) to clients, including fees, processing times, and risks of not receiving the full refund. Preparers who fail to provide these disclosures face penalties of up to $1,000 per violation, and the rules apply to tax returns filed after December 31, 2023. This directly affects tax return preparers and their clients who use refund advance services.