The largest paid tax return preparer, H & R Block, has already announced the demise of Refund Anticipation Loans (RALs) for 2012. They simply will NOT be available at any HRB location this upcoming tax season.
This outcome has been in the pipeline for years, fueled by opposition from consumer groups, the IRS decision to withhold debt indicator information and the Office of the Comptroller of the Currency ordering HRBs RAL provider bank to cease funding the loans.
What does this mean to you, the rapid refund seeking taxpayer? At the very minimum, if you have your taxes prepared by HRB in 2012, there will be no rapid refunds available to you. It’s too early to know if other national preparers such as Jackson-Hewitt or Liberty Tax will be able to field a rapid refund product in 2012. However, don’t count on it.
So-o-o-o-o-o what’s a taxpayer to do? There are three basic options: Refund Anticipation Check (RAC), Direct Deposit from the IRS to your bank account, or to a pre-paid plastic card, or an IRS check mailed directly to you. The RAC and direct deposit will require 8 to 15 days. A check mailed to you is normally received in 6 to 8 weeks. Most taxpayers, used to rapid refunds in 1 to 2 days, will not be pleased with a 1 to 2 week wait. Unfortunately, without a new refund product being introduced by the national preparers, there aren’t any other possibilities.
File early.
Tax Wisdom: Looting the future to bribe the present.