Comments on: IRS May Say No to “Rapid Refund” Type Loans http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/ Paying taxes is painful... but reading about them shouldn't be. Sun, 12 Feb 2012 17:55:29 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Ksquare http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-26233 Ksquare Sat, 21 Jan 2012 17:57:01 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-26233 They should be STOPPED! Unfortunately, many working poor who utilize these services somewhat understand they're being 'ripped-off' but are in such dire need of the money that they do it anyway. The only way to stop this predatory lending practice on the most vulnerable of our citizens is to take away the option to use it. They should be STOPPED! Unfortunately, many working poor who utilize these services somewhat understand they’re being ‘ripped-off’ but are in such dire need of the money that they do it anyway. The only way to stop this predatory lending practice on the most vulnerable of our citizens is to take away the option to use it.

]]> By: rosie http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-25976 rosie Sun, 04 Dec 2011 19:28:07 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-25976 From a service prospective, I think there is a conflict of interest in offering this product and the problems associated with this product has been exposed for years. Disallowing these products should be a priority of the IRS. Preparers are in the business of preparing taxes and should not be in the financing business. Personal information should should be used for the purpose intended and stay personal solely for the purpose of preparing taxes. If the client wants a loan (rapid refund), they should go to a place that is in the business of loaning money. I think the larger issue should be doing something to eliminate these products and similar products from being allowed to exist in the first place. That being said, there is big money involved and I'm sure there will be loopholes no matter what is done. The states need to ban together and put a stop to these predatory products. Although they have failed miserably with addressing credit cards, banks etc. I won't hold my breath on that one. From a service prospective, I think there is a conflict of interest in offering this product and the problems associated with this product has been exposed for years. Disallowing these products should be a priority of the IRS. Preparers are in the business of preparing taxes and should not be in the financing business. Personal information should should be used for the purpose intended and stay personal solely for the purpose of preparing taxes. If the client wants a loan (rapid refund), they should go to a place that is in the business of loaning money.

I think the larger issue should be doing something to eliminate these products and similar products from being allowed to exist in the first place. That being said, there is big money involved and I’m sure there will be loopholes no matter what is done. The states need to ban together and put a stop to these predatory products. Although they have failed miserably with addressing credit cards, banks etc. I won’t hold my breath on that one.

]]> By: Kelly http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-23907 Kelly Mon, 14 Feb 2011 03:21:32 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-23907 Dottie (and others) , I don't think anyone blames companies for offering a service that taxpayers want. I think what irks many of us in the tax professional field is the amount of blatant misrepresentation that goes on at many companies. I've had taxpayers tell me that they opted for a RAL because their preparer told them otherwise they would not get their refund for about 3 months; a fellow tax pro who used to work at one of the big stores told me that he quit after being pressured to lie to taxpayers to get them to sign up for a RAL. I don't think anyone wants to take away a taxpayer's right to get their money back quickly. The problem is the considerable amount of abuse that goes on in the name of RALs and similar products. There's just not enough education out there about the alternatives - I think that's what the IRS is focusing on. Dottie (and others) , I don’t think anyone blames companies for offering a service that taxpayers want. I think what irks many of us in the tax professional field is the amount of blatant misrepresentation that goes on at many companies. I’ve had taxpayers tell me that they opted for a RAL because their preparer told them otherwise they would not get their refund for about 3 months; a fellow tax pro who used to work at one of the big stores told me that he quit after being pressured to lie to taxpayers to get them to sign up for a RAL.

I don’t think anyone wants to take away a taxpayer’s right to get their money back quickly. The problem is the considerable amount of abuse that goes on in the name of RALs and similar products. There’s just not enough education out there about the alternatives – I think that’s what the IRS is focusing on.

]]> By: Dottie http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-23856 Dottie Sun, 13 Feb 2011 03:20:50 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-23856 The government set the high yield on interest rate at 36%. Forcing finance companies who offer high risk loans (i.e. RALs) to utilize the maximum rate allowed. If the people want to see a change in how RAL clients are being charged, then the yield on interest rate should be lowered and the taxpayer should be honest about a debt they owe. Most banks who offer high risk loans (RALs) loose more when a taxpayer defaults on the loan due to unpaid child support, student loans, and back taxes that IRS takes from their anticipated refund. Also lost is the fees to prepare a client return. The taxpayer rarely is upfront to tell an income tax preparer they owe a debt that will be collected by IRS. And rarely makes their debt good on the loan or the fee charged to prepare their return. The debt indicator was not fool-proof, as it only protected the finance companies, it did not protect the small business owner of a income tax preparation company, as they rarely ever were able to collect fees lost on preparing a client return. I am one of the small business owners for H&R Block, and we always encouraged our clients to pay their fees up front, rather than use a bank option, putting more money in the taxpayer's pocket. This way we are paid for our excellent service provided, without worry of losing thousands of dollars due to a debt they convienently failed to tell us about. But no matter our efforts, many of our clients command their loans due to desparate times when no one else will loan them money and don't care how they get it and where. This is a conscience choice they make. We don't make it for them, as we tried very hard to encourage them to wait the two weeks through direct deposit. The government set the high yield on interest rate at 36%. Forcing finance companies who offer high risk loans (i.e. RALs) to utilize the maximum rate allowed. If the people want to see a change in how RAL clients are being charged, then the yield on interest rate should be lowered and the taxpayer should be honest about a debt they owe. Most banks who offer high risk loans (RALs) loose more when a taxpayer defaults on the loan due to unpaid child support, student loans, and back taxes that IRS takes from their anticipated refund. Also lost is the fees to prepare a client return. The taxpayer rarely is upfront to tell an income tax preparer they owe a debt that will be collected by IRS. And rarely makes their debt good on the loan or the fee charged to prepare their return. The debt indicator was not fool-proof, as it only protected the finance companies, it did not protect the small business owner of a income tax preparation company, as they rarely ever were able to collect fees lost on preparing a client return.

I am one of the small business owners for H&R Block, and we always encouraged our clients to pay their fees up front, rather than use a bank option, putting more money in the taxpayer’s pocket. This way we are paid for our excellent service provided, without worry of losing thousands of dollars due to a debt they convienently failed to tell us about. But no matter our efforts, many of our clients command their loans due to desparate times when no one else will loan them money and don’t care how they get it and where. This is a conscience choice they make. We don’t make it for them, as we tried very hard to encourage them to wait the two weeks through direct deposit.

]]> By: Marco "Polo" http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-23844 Marco "Polo" Sat, 12 Feb 2011 06:37:23 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-23844 Hey!! It's My Money and I Need It Now!!! Hey sometimes a little humor goes a long way. LOL But there are both good and bad things out there. If I remembered correctly the Constitution started out.... "WE THE PEOPLE..." What would happened if WE THE PEOPLE did the same thing as Egypt did? But here's the thing.... All of the Advertisements should have told people about this in advance..... instead they hyped up the unsuspecting population. So was this false advertising or the "Last Minute" thing by the IRS/government? Now while I'm at it... let's talk about "FRAUD" and "FOUL"... The Banks and Auto (Well you have to give GM credit.... rising stocks, new jobs...etc.) industries that "WE THE PEOPLE" bailed out... the national debt, War, Natural Disaster Reliefs to other countries and more. But what really takes the cake... spending of trillions of "Phantom Dollars" which does not cease to exist, on things we could do without. But Noooooo we have to compete with the other countries. What ever happened to "Charity begins at HOME and spreads abroad?" So what's the true meanings to RAL??? THINK... they do what they want, when they want and how they want... Now you KNOW HOW RAL (Random Asylum Loans) were created. So in the end... make your Representatives, Senators....etc (Who begged for your votes on "Broken Promises" before they even got into office.) ACCOUNTABLE. It's easier for a camel to go through an eye of the needle than rich men get to heaven. LOL God knew what he was talking about. ===> LISTEN!!! and learn the HISTORY of civilization... those that fails to do so... are DOOMED to REPEAT IT! And guess who gets hurt??? Riddle: Its population is 99.6% that is controlled by the other 0.4% "Go look in the mirror." "... there's nothing new under the sun." - King Solomon I'm Out! Hey!! It’s My Money and I Need It Now!!! Hey sometimes a little humor goes a long way. LOL But there are both good and bad things out there. If I remembered correctly the Constitution started out…. “WE THE PEOPLE…” What would happened if WE THE PEOPLE did the same thing as Egypt did?
But here’s the thing…. All of the Advertisements should have told people about this in advance….. instead they hyped up the unsuspecting population. So was this false advertising or the “Last Minute” thing by the IRS/government?
Now while I’m at it… let’s talk about “FRAUD” and “FOUL”… The Banks and Auto (Well you have to give GM credit…. rising stocks, new jobs…etc.) industries that “WE THE PEOPLE” bailed out… the national debt, War, Natural Disaster Reliefs to other countries and more. But what really takes the cake… spending of trillions of “Phantom Dollars” which does not cease to exist, on things we could do without. But Noooooo we have to compete with the other countries. What ever happened to “Charity begins at HOME and spreads abroad?” So what’s the true meanings to RAL??? THINK… they do what they want, when they want and how they want… Now you KNOW HOW RAL (Random Asylum Loans) were created.
So in the end… make your Representatives, Senators….etc (Who begged for your votes on “Broken Promises” before they even got into office.) ACCOUNTABLE.

It’s easier for a camel to go through an eye of the needle than rich men get to heaven. LOL God knew what he was talking about. ===> LISTEN!!! and learn the HISTORY of civilization… those that fails to do so… are DOOMED to REPEAT IT! And guess who gets hurt??? Riddle: Its population is 99.6% that is controlled by the other 0.4%

“Go look in the mirror.”

“… there’s nothing new under the sun.” – King Solomon

I’m Out!

]]> By: Laura http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-23746 Laura Mon, 07 Feb 2011 02:11:51 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-23746 I also worked for this company for two years. I always tried to talk my customers out of RAL's, but the problem I found with my customers is they couldn't afford to pay for the tax preparation without get the RAL. I hated seeing my customers choosing this option. Another problem I have with this company is they will hire anyone off the street. They don't care if you have experience or not. I worked with a girl who had no idea how to prepare taxes. I don't care that it is all done on a computer. If you don't know what tax breaks to look for then your going to miss big money for the customers. I am so glad I no longer work for this company. I also worked for this company for two years. I always tried to talk my customers out of RAL’s, but the problem I found with my customers is they couldn’t afford to pay for the tax preparation without get the RAL. I hated seeing my customers choosing this option.
Another problem I have with this company is they will hire anyone off the street. They don’t care if you have experience or not. I worked with a girl who had no idea how to prepare taxes. I don’t care that it is all done on a computer. If you don’t know what tax breaks to look for then your going to miss big money for the customers. I am so glad I no longer work for this company.

]]> By: Kelly http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-23529 Kelly Sun, 30 Jan 2011 13:01:20 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-23529 Unknown - to clarify, the reference to the financial incentive for tax preparer does not apply to all tax preparers. However, some tax preparers who offer RALs and other refund-related products charge a fee based on the total amount of your refund. As a result, the bigger your refund, the more the preparer gets. The IRS has noticed a pattern from certain preparers of inflating refunds for taxpayers (i.e. lying) so that the preparer gets paid more (they've prosecuted a number of these cases). In cases like that, the money is really neither the taxpayer's nor the preparer's - it's the government's. That's one of the reasons why the IRS believes it has a say so in the methods being used. Unknown – to clarify, the reference to the financial incentive for tax preparer does not apply to all tax preparers. However, some tax preparers who offer RALs and other refund-related products charge a fee based on the total amount of your refund. As a result, the bigger your refund, the more the preparer gets. The IRS has noticed a pattern from certain preparers of inflating refunds for taxpayers (i.e. lying) so that the preparer gets paid more (they’ve prosecuted a number of these cases). In cases like that, the money is really neither the taxpayer’s nor the preparer’s – it’s the government’s. That’s one of the reasons why the IRS believes it has a say so in the methods being used.

]]> By: unknown http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-23528 unknown Sun, 30 Jan 2011 00:13:42 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-23528 The tax preparer is not the one that gets all the money they charge you for rapid refund or ral!The bank gets the big part of it! But i think its your money so you should have ALL say so!!!!! The tax preparer is not the one that gets all the money they charge you for rapid refund or ral!The bank gets the big part of it! But i think its your money so you should have ALL say so!!!!!

]]> By: Deborah Jacques-Meraz http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-23523 Deborah Jacques-Meraz Sat, 29 Jan 2011 16:59:39 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-23523 I am all for the IRS checking into this situation. Tax preparers are supposed to be trained to assist people in getting the best service and credits that are owed to them. It should not be for them (the preparers) to make the FAST buck. I hope that the IRS does stand behind this and really SAY NO. I am all for the IRS checking into this situation. Tax preparers are supposed to be trained to assist people in getting the best service and credits that are owed to them. It should not be for them (the preparers) to make the FAST buck. I hope that the IRS does stand behind this and really SAY NO.

]]> By: olin r. Alford http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/comment-page-1/#comment-23435 olin r. Alford Tue, 25 Jan 2011 03:04:15 +0000 http://www.taxgirl.com/irs-may-say-no-to-rapid-refund-type-loans/#comment-23435 i think thay should stay if people are willing to pay the fees than so be it. i think thay should stay if people are willing to pay the fees than so be it.

]]>