Comments on: Vote on Stimulus Bill Expected on Monday

By: skip

skip — Sun, 08 Feb 2009 04:15:24 +0000

Interesting question about the RAL’s. A whole lot of years ago – about the time I invented dirt – some accountants would advance their clients their refunds and charge a fee for that advance. It was decided by whoever makes those decisions that the accountant could no longer do that as the fees they were charging were considered too high. Back then a refund of 3-4 hundred dollars was really good. Then along came the EIC and the banks saw a way to make a lot of money and whoever makes the decisions decided that was OK. We have not offered the RAL’s until this year. What we really wanted was a way to have our fees taken out of the taxpayers refund. Our reasoning was simple – some of our fees amount to several hundreds of dollars and we felt that in the current economic situation some of our clients would not be able to pay us right away. And we simply do not need nor want a larger receivables then we already have. But to get what is known as an “RT” we had to offer the RAL’s. Two things have simply amazed me – the first is the absolutely disgraceful interest rates for an RAL and the second is just exactly how many people have elected to get them so far. I have one individual who handles these things and his instructions are very, very clear – try to talk them out of the RAL’s. And he does. And they still elect to get them. And these are people who I would not consider stupid or uninformed about interest rates – these are what I would call sensible people on most matters. But they still elect the RAL’s. I did a return today for a young man and his wife (2 kids) – I was doing the young man’s parents return when he was born – and he opted for the RAL. In this case I simply told him he could not do it – I would not allow it. He simply said “Yes sir”, signed his e-file papers and will get his money in a week or so. But I do not have that control over all my clients and it just bothers the devil out of me to have them apply for an RAL. Wish I had never agreed to offer them – wouldn’t be having these bad thoughts about my clients being ripped off. If they really want to be ripped off let them go to Block, or Liberty or whoever – I should not be doing it. There is more to my practice then the money it makes. At least I like to think so.

By: irslinda

irslinda — Sat, 07 Feb 2009 23:01:44 +0000

How is it that H & R Block ,Jackson Hewitt, Liberty Tax, etc are allowed to charge so much for RALs. Lots of what I see and hear is low income people who get anywhere around,$4,000 and above in EIC are charged as high as 25% of the refund amount to file their taxes. The goverment is paying to have their taxes done. These companies deposit the refunds into their Banks and make interest off of thousands upon thousands of dollars of refunds. These people don’t usuallycare or understand. They only care that they can get lots of money quick. There should be a ceiling on how much they can charge especially for the EIC type returns.

By: Kelly

Kelly — Sat, 07 Feb 2009 22:48:50 +0000

All roads lead to the Bloggess, no? I love her!

By: MommyNamedApril

MommyNamedApril — Sat, 07 Feb 2009 16:23:14 +0000

Sorry, I just read your commenting policy… I’m April, lawyer gone mommy gone mommyblogger. Found you via Blogging Matilda who found me via The Bloggess.

By: MommyNamedApril

MommyNamedApril — Sat, 07 Feb 2009 16:12:32 +0000

Looking forward to the details. What I’ve read so far makes me ill… Frisbie Golf courtesy of the U.S. taxpayers, anyone?