LRB-2335/2
MDK&JK:nwn:md
2009 - 2010 LEGISLATURE
June 2, 2009 - Introduced by Representatives Zepnick and A. Williams. Referred
to Committee on Financial Institutions.
AB290,1,5 1An Act to create 20.566 (1) (hc) and 73.03 (64) of the statutes; relating to:
2licensing tax preparers, prohibiting making or arranging certain refund
3anticipation loans, providing an exemption from emergency rule procedures,
4granting rule-making authority, making an appropriation, and providing
5penalties.
Analysis by the Legislative Reference Bureau
Under current law, a tax preparer is subject to certain privacy requirements
regarding information obtained in preparing a client's tax return. Current law
defines "tax preparer" as a person who, for compensation, prepares an income tax
return of another person, but does not include: 1) a licensed certified public
accountant; 2) a licensed attorney; or 3) an employee of a corporate trustee, bank, or
trust company, who is authorized to provide fiduciary services. Current law also
requires a creditor to make specified disclosures before making a "refund
anticipation loan" to a customer, which is defined as an agreement under which the
creditor arranges to be repaid for a loan directly from the proceeds of the customer's
income tax refund.
This bill requires the Department of Revenue (DOR) to promulgate rules
prohibiting a person from acting as a tax preparer without a license issued by DOR.
The bill's definition of "tax preparer" is the same as under current law, except it
includes a licensed certified public accountant or attorney. The rules must specify
license qualifications, establish a license fee, and require periodic renewal of

licenses. In addition, the rules may impose other requirements and procedures that
DOR determines are necessary. The rules must also prohibit a person issued a
license from making a refund anticipation loan, as defined under current law, or
acting in any manner to facilitate the making of such a loan by an in-state or
out-of-state creditor.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB290, s. 1 1Section 1. 20.566 (1) (hc) of the statutes is created to read:
AB290,2,42 20.566 (1) (hc) Licensing tax preparers. All moneys received from the license
3fees imposed under s. 73.03 (64) for administering the program to license tax
4preparers as provided under s. 73.03 (64).
AB290, s. 2 5Section 2. 73.03 (64) of the statutes is created to read:
AB290,2,146 73.03 (64) (a) To promulgate rules prohibiting a person from acting as a tax
7preparer, as defined in s. 100.57 (1) (b), but including individuals specified in s.
8100.57 (1) (b) 1. and 2., unless the department has issued a license to the person. The
9rules shall specify the qualifications required for licensure, establish a license fee,
10require periodic renewal of licenses, and impose any other requirements and
11procedures that the department determines are necessary for licensure. The rules
12shall also prohibit a person issued a license from making a refund anticipation loan,
13as defined in s. 421.301 (37m), or acting in any manner to facilitate the making of
14such a loan by an in-state or out-of-state creditor.
AB290,3,315 (b) A tax preparer, as defined in s. 100.57 (1) (b), but including individuals
16specified in s. 100.57 (1) (b) 1. and 2., who is not licensed as provided in par. (a) and
17who makes, attempts to make, or acts in any manner to facilitate the making of a
18refund anticipation loan, as defined in s. 421.301 (37m), is subject to a penalty of not

1more than $500 for each such incident or imprisonment for not more than 6 months
2for the first such incident and not more than one year for any subsequent incidents
3or both the penalty and the imprisonment provided under this paragraph.
AB290,3,114 (c) A tax preparer, as defined in s. 100.57 (1) (b), but including individuals
5specified in s. 100.57 (1) (b) 1. and 2., who is licensed as provided in par. (a) and who
6makes, attempts to make, or acts in any manner to facilitate the making of a refund
7anticipation loan, as defined in s. 421.301 (37m), is subject to a penalty of not more
8than $1,000 for the first such incident and $1,500 for each subsequent incident or
9imprisonment for not more than one year for the first such incident and not more
10than 18 months for any subsequent incidents or both the penalty and the
11imprisonment provided under this paragraph.
AB290, s. 3 12Section 3. Nonstatutory provisions.
AB290,3,2213 (1) Using the procedure under section 227.24 of the statutes, the department
14of revenue may promulgate rules required under section 73.03 (64) of the statutes,
15as created by this act, for the period before the effective date of the permanent rules
16promulgated under section 73.03 (64) of the statutes, as created by this act, but not
17to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes.
18Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the department
19of revenue is not required to provide evidence that promulgating a rule under this
20subsection as an emergency rule is necessary for the preservation of public peace,
21health, safety, or welfare and is not required to provide a finding of an emergency for
22a rule promulgated under this subsection.
AB290, s. 4 23Section 4. Effective date.
AB290,4,2
1(1) This act takes effect on the first day of the 13th month beginning after
2publication.
AB290,4,33 (End)
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