|
|
|
|
|
|
Tax Fraud
Tax Refund Loan Scams
Everyone wants to get their tax refund as quickly as possible and no one knows this more than tax preparers.
They have set up a system that allows you to walk away with money immediately. They call them "refund anticipation loans"
and they are short term bank loans set up for you by your tax preparer. Notice that I said that these are "loans"
because that's why you want to avoid these programs. While they are perhaps not a scam in the sense that you will
lose your money it is true that you will pay a lot of money for this loan which only gets you your money a little faster
than our recommended method for tax returns which is to file your taxes electronically and have the IRS transfer the money
directly into your account which will probably only take a couple of weeks.
The Cost of the Loans is too high
You could end up paying $30 to $150 dollars which is, I guess, a sort of impatience fee. Plus you will be paying your tax
preparer their fees on top of the loan fee! As I said before, this is a loan so you will need to make sure you pay it back
in full. So if the IRS disallows some of your deductions and your refund ends up being smaller than you expected you will
still need to pay back everything you borrowed.
If you had waited for the electronic transfer or the mailman to bring you
the refund you would have not just a larger check, you would also have a lot less hassle in the end.
Read more about tax preparation fraud:
Tip of the Day: Feb 1 - Tax Refund Anticipation Loans
Related Tax Fraud Links:
IRS Free Online Filing
Tax refund impatience can carry a high price
Tax Refund Ripoffs
|
|
|
|
|
|
|
This site is protected under both U.S. Federal copyright law and international treaties. No part of this site,
including text, layout or images, may be reproduced or copied in any form or by any method.
|
