Don’t Get Scammed: Important Tax Rebate Information

There’s nothing like a few extra dollars - this time in the form of tax rebates - floating around to bring out the worst in people. Don’t get scammed. Know your facts.

One of the biggest scam opportunities in recent tax years involves the tax rebates from the economic stimulus plan and the question of direct deposit. It’s important to understand the IRS’ position on direct deposit, refund anticipation loans (RALs) and tax rebates.

1, You can have your rebate check direct deposited into your bank account but only if you choose this option when filing your 2007 income tax return. If you do not choose direct deposit when filing your 2007 income tax return, you will receive a paper check. There is no additional paperwork to be filed and you cannot receive your tax rebate by credit card - so ignore any phone calls and emails that say otherwise.

2, If you choose to receive a refund anticipation loan (RAL), contract with any other lender or enter into a financial agreement with your tax professional (which I personally do not recommend), you will not receive your tax rebate by direct deposit. You will receive a paper check.

I can’t emphasize this enough. The only way that you can “speed up” your tax rebate is to file your 2007 taxes early and request direct deposit on that tax form. Do not listen to scam artists that promise an early rebate by any other method.

Also keep in mind that tax rebates will be mailed in May. Any person or company that promises you a rebate prior to May is not being honest with you.