AICPA supports concept of regulating tax preparers, refund anticipation loan providers.In a letter to Congress, the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). showed support for the concept of regulating all tax return preparers and refund anticipation loan A (Tax) Refund Anticipation Loan (RAL) is a high interest rate short-term loan secured by a taxpayer’s expected tax refund. United States In the United States, the taxpayer commonly applies for the loan through a paid tax preparation firm. providers, but also raised some public policy and drafting concerns about the registration proposal which passed the Senate in May. Noting that the registration proposal was a partial response to the high error rates associated with Earned Income Tax Credit The United States federal Earned Income Tax Credit (EITC) is a refundable tax credit that reduces or eliminates the taxes that low-income married working people pay (such as payroll taxes) and also frequently operates as a wage subsidy for low-income workers. claims and consumer protection concerns with refund anticipation loans, the AICPA instead recommended enacting legislation that directly attacks the fraud, negligence and abuses committed by some preparers with respect to the EITC EITC Earned Income Tax Credit EITC Eastern Idaho Technical College EITC Emirates Integrated Telecommunication Company (UAE) EITC Education and Information Transfer Core EITC Electro/Information Technology Conference . The Institute also urged Congress to further restrict, or outright prohibit, the use and availability of refund anticipation loans. To read the comment letter, visit https://www.cpa2biz.com/ tax (click on "Tax Practice"). |
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