Bonamici & Booker Introduce Bill to Protect Tax Refunds

To coincide with tax day, Congresswoman Suzanne Bonamici (OR-01) and Senator Cory Booker (D-NJ) introduced a bill to protect the refunds of taxpayers and highlight the importance of cracking down on unscrupulous tax preparers.

“This bill includes multiple safeguards to ensure that preparers are not using unethical practices to take more money than they are owed,” Congresswoman Bonamici said. “The complicated tax process creates an opportunity for some tax preparers to take advantage of filers. Preparers can add hidden fees or skim off a filer’s refund, and it's often low-income Americans are most at risk.”

The Tax Refund Protection Act, HR 1778, provides greater protection for consumers by requiring tax preparers to provide a disclosure statement outlining the fees they will charge for preparing a tax return, the time filers can expect to receive their refunds, and potential additional fees associated with a refund anticipation check.

“There should be greater transparency surrounding tax preparers,” Congresswoman Bonamici said. “Filers should not have to worry about being overcharged because their preparer has a better understanding of the process than they do. The regulations outlined in this bill will bring greater oversight of tax preparers to protect consumers.”

The bill also requires the Consumer Financial Protection Bureau (CFPB) to regulate refund anticipation checks, which are often used to charge higher fees from filers.

“Each tax season, far too many low-income taxpayers fall victim to deceptive tax refund products with unfair rates and fees that dig deeply into their overstrained budgets. These taxpayers need and deserve better,” Sen. Booker said. “This legislation would authorize the CFPB to regulate the tax-time marketplace for financial products in order to eliminate harmful practices and protect taxpayers.”