AARP: Rapid Tax Refunds Warning
Rapid refunds are also known as refund anticipation loans (RAL). They are offered by some commercial tax preparation firms and banks to people who want to receive a fast rapid refund. Rapid or "instant" refunds are really loans. In order to receive their money early, consumers are charged a loan fee ranging from $29 to $120. The Annual Percentage Rate (APR) on these loans can range from 40% to over 700%. Electronic filing fees and fees for tax preparers can also be added which can end up costing you 10% or more of your total tax refund. In addition, since the refunds are loans, they must be repaid if the Internal Revenue Service (IRS) delays or denies you a refund or gives a refund that is smaller than you expected.
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Category: Politics & Goverment
worries.
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Category: Spanish
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