Tax preparation services; tax preparers prohibited from marking a tax return to designate a contribution to the state elections campaign account without explicit instruction from the taxpayer.

A bill for an act

relating to taxation; tax preparation services; prohibiting tax preparers from marking

a tax return to designate a contribution to the state elections campaign account

without explicit instruction from the taxpayer; amending Minnesota Statutes 2025

Supplement, section 270C.445, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2025 Supplement, section 270C.445, subdivision 3, is

amended to read:

Subd. 3.

Standards of conduct.

No tax preparer shall:

(1) without good cause fail to promptly, diligently, and without unreasonable delay

complete a client's return;

(2) obtain the signature of a client to a return or authorizing document that contains

blank spaces to be filled in after it has been signed;

(3) fail to sign a client's return when compensation for services rendered has been made;

(4) fail to provide on a client's return the preparer tax identification number when required

under section 6109(a)(4) of the Internal Revenue Code or section
289A.60, subdivision 28
;

(5) fail or refuse to give a client a copy of any document requiring the client's signature

within a reasonable time after the client signs the document;

(6) fail to retain for at least four years a copy of a client's returns;

(7) fail to maintain a confidential relationship with clients or former clients;

(8) fail to take commercially reasonable measures to safeguard a client's nonpublic

personal information;

(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or

indirectly, any false, deceptive, or misleading statement or representation relating to or in

connection with the offering or provision of tax preparation services;

(10) require a client to enter into a loan arrangement in order to complete a client's return;

(11) claim credits or deductions on a client's return for which the tax preparer knows or

reasonably should know the client does not qualify;

(12) report a household income on a client's claim filed under chapter 290A that the tax

preparer knows or reasonably should know is not accurate;

(13) engage in any conduct that is subject to a penalty under section
289A.60, subdivision

13
, 20, 20a, 26, or 28;

(14) whether or not acting as a taxpayer representative, fail to conform to the standards

of conduct required by Minnesota Rules, part
8052.0300
, subpart 4;

(15) whether or not acting as a taxpayer representative, engage in any conduct that is

incompetent conduct under Minnesota Rules, part
8052.0300
, subpart 5;

(16) whether or not acting as a taxpayer representative, engage in any conduct that is

disreputable conduct under Minnesota Rules, part
8052.0300
, subpart 6;

(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated

refund for tax preparation services;

(18) under any circumstances, withhold or fail to return to a client a document provided

by the client for use in preparing the client's return;

(19) take control or ownership of a client's refund or department payment by any means,

including:

(i) directly or indirectly endorsing or otherwise negotiating a check or other refund

instrument, including an electronic version of a check;

(ii) directing an electronic or direct deposit of the refund or department payment into an

account unless the client's name is on the account; and

(iii) establishing or using an account in the preparer's name to receive a client's refund

or department payment through a direct deposit or any other instrument unless the client's

name is also on the account;

(20) fail to act in the best interests of the client;

(21) fail to safeguard and account for any money handled for the client;

(22) fail to disclose all material facts of which the preparer has knowledge which might

reasonably affect the client's rights and interests;

(23) violate any provision of section
332.37
;

(24) include any of the following in any document provided or signed in connection

with the provision of tax preparation services:

(i) a hold harmless clause;

(ii) a confession of judgment or a power of attorney to confess judgment against the

client or appear as the client in any judicial proceeding;

(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against

a debtor;

(iv) an assignment of or an order for payment of wages or other compensation for

services;

(v) a provision in which the client agrees not to assert any claim or defense otherwise

available;

(vi) a waiver of any provision of this section or a release of any obligation required to

be performed on the part of the tax preparer; or

(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on

a class basis;
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or
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(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all

disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a

form that may be retained by the client
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.
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; or
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(26) mark a tax return to designate a contribution be made to the state elections campaign

account under section 10A.31, unless explicitly instructed to do so by the taxpayer.

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