Results 1 to 8 of 8
  1. #1
    Liss
    Guest

    Default Tax Refunds: You Don''t Have To Pay To Borrow Your Own Money

    You Don’t Have To Pay To Borrow Your Own Money


    For Release: December 20, 2006
    Contact: Meredith Helgerson, Communications Officer, (608) 261-2271


    MADISON – Earlier than usual, the Department of Revenue, the Department of Financial Institutions and the Department of Agriculture, Trade and Consumer Protection, warn of a new tactic some tax preparation firms are using to lure new customers into high cost advancement loans well before tax season begins. The Wisconsin Better Business Bureau also has announced recently that Advanced Fee Loans were the worst scam in Wisconsin in 2006.


    Tax preparation firms and their banks are offering a new type of tax Refund Anticipation Loan (RAL) available before the traditional tax season even begins. Called “Holiday RALs” or “pay-stub RALs” the RALs are based on an individual’s pay stub. The RAL is secured by a taxpayer’s “expected” refund, but does not reflect actual refunds, which can be adjusted for liens and levies or other sources of income. A RAL is also accompanied by various types of fees and charges.


    Some tax preparation firms are also requiring a $50 “deposit” for each loan. The deposit is only returned when the taxpayer returns to the same office to file the tax return.


    Essentially, taxpayers who use RALs, are paying a high price to borrow their own money. These loans have high, often hidden costs.


    “ Wisconsin should know that a RAL is not the only resort – other options are available,” stated Secretary of Revenue Michael L. Morgan. “Volunteer Income Tax Assistance (VITA) sites are available to provide free tax preparation assistance around the state.”


    Taxpayers can visit any free tax preparation site where they can have their taxes electronically prepared for free. For more information about VITA, check the DOR web site at: http://www.revenue.wi.gov/faqs/pcs/vita.html and typing in VITA.


    By e-filing a return, the refund can be directly deposited into the taxpayer's checking/savings account within a matter of days, all free of charge.


    However, many residents do not have a checking/savings account. To help the 'unbanked' avoid a RAL, several dozen VITA sites have partnered with local financial institutions to offer taxpayers the opportunity to open a personal checking/savings account while visiting the VITA site. Opening an account would allow a taxpayer to receive a refund via direct deposit within a few days. In addition, the new account holders would also be able to build their credit histories and more easily save money by not having to pay for check-cashing services.


    Statistical Information:
    In 2004, approximately 130,000 Wisconsin taxpayers paid about $32.5 million in RAL and associated fees, according to a report by the Wisconsin Council on Children and Families. An average tax refund of $2,000 can carry RAL-associated fees of $250 or more. That is equivalent to paying an annual interest rate of 521% for a 10 day loan. Plus, if a refund is delayed or denied for any reason, the consumer is responsible for paying back the loan as well as all fees. Before electronic filing, these high interest loans may have been attractive because paper tax returns would take several weeks to process. But with today’s e-filing, state and federal refunds are available within a matter of days when deposited directly into a checking or savings account, all at no cost to the taxpayer. For more information on free tax preparation or RAL scams, go to www.revenue.wi.gov , www.wisconsin.bbb.org, or call 1-800-829-1040.

    Partners: Wisconsin Department of Financial Institutions, Wisconsin Department of Revenue, Wisconsin Department of Agriculture, Trade and Consumer Protection, Wisconsin Council on Children and Families, Wisconsin Bankers Association, Community Bankers of Wisconsin and Wisconsin Credit Union League.

  2. #2
    herberkids3
    Guest

    Default Tax Refunds: You Don''t Have To Pay To Borrow Your Own Money

    Great article, Liss!



    We got stuck doing the RAL one year, and it cost us almost $400 of

    our tax money!! The only reason we did it was becuase we needed our

    refund quickly, and the cost we were told to do the taxes at H & R

    Block, and the actual end cost were WAY different.



    We were told when we called that for easy cases (which ours is!) it

    starts at $85. We expected to pay maybe $100, and had no extra cash.

    At the end, we were shocked to learn it would cost us almost $250

    for having them do our taxes! In order to bypass paying outright, we

    could do the RAL, and it would come out of the money, including the

    extra charge.



    I was NOT happy. Last year, we got them done for free at H & R Block

    because a friend worked there. This year, I'm talking hubby into

    just buying the H & R Block Tax Cut program, and using it to prepare

    ours and other people's for them. It's $50, but it has garunteed

    audit protection with it, where as the cheaper programs and the free

    ones don't.



    We've never been audited, but I'm not willing to test the theory,

    either.



    --- In Budget101_@yahoogroups.com, "Liss" <liss@...> wrote:

    >

    >

    > You Don't Have To Pay To Borrow Your Own Money

    >

    >

    > For Release: December 20, 2006

    > Contact: Meredith Helgerson <mailto:meredith.helgerson@...> ,

    > Communications Officer, (608) 261-2271

    >

    > MADISON - Earlier than usual, the Department of Revenue, the

    Department of

    > Financial Institutions and the Department of Agriculture, Trade

    and Consumer

    > Protection, warn of a new tactic some tax preparation firms are

    using to

    > lure new customers into high cost advancement loans well before

    tax season

    > begins. The Wisconsin Better Business Bureau also has announced

    recently

    > that Advanced Fee Loans were the worst scam in Wisconsin in 2006.

    >

    > Tax preparation firms and their banks are offering a new type of

    tax Refund

    > Anticipation Loan (RAL) available before the traditional tax

    season even

    > begins. Called "Holiday RALs" or "pay-stub RALs" the RALs are

    based on an

    > individual's pay stub. The RAL is secured by a

    taxpayer's "expected" refund,

    > but does not reflect actual refunds, which can be adjusted for

    liens and

    > levies or other sources of income. A RAL is also accompanied by

    various

    > types of fees and charges.

    >

    > Some tax preparation firms are also requiring a $50 "deposit" for

    each loan.

    > The deposit is only returned when the taxpayer returns to the same

    office to

    > file the tax return.

    >

    > Essentially, taxpayers who use RALs, are paying a high price to

    borrow their

    > own money. These loans have high, often hidden costs.

    >

    > " Wisconsin should know that a RAL is not the only resort - other

    options

    > are available," stated Secretary of Revenue Michael L.

    Morgan. "Volunteer

    > Income Tax Assistance (VITA) sites are available to provide free

    tax

    > preparation assistance around the state."

    >

    > Taxpayers can visit any free tax preparation site where they can

    have their

    > taxes electronically prepared for free. For more information about

    VITA,

    > check the DOR web site at:

    http://www.revenue.wi.gov/faqs/pcs/vita.html

    > <http://www.dor.state.wi.us/faqs/pcs/vita.html> and typing in

    VITA.

    >

    > By e-filing a return, the refund can be directly deposited into the

    > taxpayer's checking/savings account within a matter of days, all

    free of

    > charge.

    >

    > However, many residents do not have a checking/savings account. To

    help the

    > 'unbanked' avoid a RAL, several dozen VITA sites have partnered

    with local

    > financial institutions to offer taxpayers the opportunity to open

    a personal

    > checking/savings account while visiting the VITA site. Opening an

    account

    > would allow a taxpayer to receive a refund via direct deposit

    within a few

    > days. In addition, the new account holders would also be able to

    build their

    > credit histories and more easily save money by not having to pay

    for

    > check-cashing services.

    >

    > Statistical Information:

    >

    > * In 2004, approximately 130,000 Wisconsin taxpayers paid

    about $32.5

    > million in RAL and associated fees, according to a report by the

    Wisconsin

    > Council on Children and Families.

    >

    > * An average tax refund of $2,000 can carry RAL-associated

    fees of

    > $250 or more. That is equivalent to paying an annual interest rate

    of 521%

    > for a 10 day loan.

    >

    > * Plus, if a refund is delayed or denied for any reason, the

    consumer

    > is responsible for paying back the loan as well as all fees.

    >

    > * Before electronic filing, these high interest loans may

    have been

    > attractive because paper tax returns would take several weeks to

    process.

    > But with today's e-filing, state and federal refunds are available

    within a

    > matter of days when deposited directly into a checking or savings

    account,

    > all at no cost to the taxpayer.

    >

    > * For more information on free tax preparation or RAL scams,

    go to

    > www.revenue.wi.gov <http://www.dor.state.wi.us/index.html> ,

    > www.wisconsin.bbb.org <http://www.wisconsin.bbb.org/> , or call

    > 1-800-829-1040.

    >

    > Partners: Wisconsin Department of Financial Institutions, Wisconsin

    > Department of Revenue, Wisconsin Department of Agriculture, Trade

    and

    > Consumer Protection, Wisconsin Council on Children and Families,

    Wisconsin

    > Bankers Association, Community Bankers of Wisconsin and Wisconsin

    Credit

    > Union League.

    >










  3. #3
    Kathy Henderson
    Guest

    Default Tax Refunds: You Don''t Have To Pay To Borrow Your Own Money

    You can also go to the IRS website and do free file online. I use the turbo tax version. There are some income limitations, but it would be worth a look. www.irs.gov

    I hope this helps someone.

    Kathy in MO

    "People may say I can&#39;t sing, but no one can ever say I didn&#39;t sing. "
    -- Florence Foster Jenkins




  4. #4
    sherri
    Guest

    Default Tax Refunds: You Don''t Have To Pay To Borrow Your Own Money

    Does anyone know of the link for Ohio for this? Sherri But with today's e-filing, state and federal refunds are available within a
    matter of days when deposited directly into a checking or savings account,
    all at no cost to the taxpayer.

    &#32;
    Food fight? Enjoy some healthy debate
    in the Yahoo! Answers Food Drink Q&A.


  5. #5
    Herlean
    Guest

    Default Tax Refunds: You Don''t Have To Pay To Borrow Your Own Money

    I get so mad when I hear those ads!!!! Why would someone be so willing to pay to get their own money? Just direct deposit your refund and wait two weeks or less to get the full amount yourself! The interest is something like 150% on the "loan" of your own money. Get real. If you don't have a bank account, it would be worth opening one before filing your taxes just to get the direct deposit. If you don't like having one, you can always take the money out once it is there and close the account. Herlean

    Kathy Henderson <earthnoodle@gmail.com> wrote: You can also go to the IRS website and do free file online. I use the turbo tax version. There are some income limitations, but it would be worth a look. www.irs.gov I hope this helps someone. Kathy in MO

    "People may say I can't sing, but no one can ever say I didn't sing. "
    -- Florence Foster Jenkins



    &#32;
    Bored stiff? Loosen up...
    Download and play hundreds of games for free on Yahoo! Games.


  6. #6
    farmnurse@cox.net>
    Guest

    Default Tax Refunds: You Don''t Have To Pay To Borrow Your Own Money

    There are several that you can access online through the IRS web site. I no

    longer buy a program, I do not pay HR or anyone else to do them. I file free and

    get my refund in about two weeks.





    ---- herberkids3 <herberkids3@yahoo.com> wrote:

    > Great article, Liss!

    >

    > We got stuck doing the RAL one year, and it cost us almost $400 of

    > our tax money!! The only reason we did it was becuase we needed our

    > refund quickly, and the cost we were told to do the taxes at H & R

    > Block, and the actual end cost were WAY different.

    >

    > We were told when we called that for easy cases (which ours is!) it

    > starts at $85. We expected to pay maybe $100, and had no extra cash.

    > At the end, we were shocked to learn it would cost us almost $250

    > for having them do our taxes! In order to bypass paying outright, we

    > could do the RAL, and it would come out of the money, including the

    > extra charge.

    >

    > I was NOT happy. Last year, we got them done for free at H & R Block

    > because a friend worked there. This year, I'm talking hubby into

    > just buying the H & R Block Tax Cut program, and using it to prepare

    > ours and other people's for them. It's $50, but it has garunteed

    > audit protection with it, where as the cheaper programs and the free

    > ones don't.

    >

    > We've never been audited, but I'm not willing to test the theory,

    > either.

    >

    > --- In Budget101_@yahoogroups.com, "Liss" <liss@...> wrote:

    > >

    > >

    > > You Don't Have To Pay To Borrow Your Own Money

    > >

    > >

    > > For Release: December 20, 2006

    > > Contact: Meredith Helgerson <mailto:meredith.helgerson@...> ,

    > > Communications Officer, (608) 261-2271

    > >

    > > MADISON - Earlier than usual, the Department of Revenue, the

    > Department of

    > > Financial Institutions and the Department of Agriculture, Trade

    > and Consumer

    > > Protection, warn of a new tactic some tax preparation firms are

    > using to

    > > lure new customers into high cost advancement loans well before

    > tax season

    > > begins. The Wisconsin Better Business Bureau also has announced

    > recently

    > > that Advanced Fee Loans were the worst scam in Wisconsin in 2006.

    > >

    > > Tax preparation firms and their banks are offering a new type of

    > tax Refund

    > > Anticipation Loan (RAL) available before the traditional tax

    > season even

    > > begins. Called "Holiday RALs" or "pay-stub RALs" the RALs are

    > based on an

    > > individual's pay stub. The RAL is secured by a

    > taxpayer's "expected" refund,

    > > but does not reflect actual refunds, which can be adjusted for

    > liens and

    > > levies or other sources of income. A RAL is also accompanied by

    > various

    > > types of fees and charges.

    > >

    > > Some tax preparation firms are also requiring a $50 "deposit" for

    > each loan.

    > > The deposit is only returned when the taxpayer returns to the same

    > office to

    > > file the tax return.

    > >

    > > Essentially, taxpayers who use RALs, are paying a high price to

    > borrow their

    > > own money. These loans have high, often hidden costs.

    > >

    > > " Wisconsin should know that a RAL is not the only resort - other

    > options

    > > are available," stated Secretary of Revenue Michael L.

    > Morgan. "Volunteer

    > > Income Tax Assistance (VITA) sites are available to provide free

    > tax

    > > preparation assistance around the state."

    > >

    > > Taxpayers can visit any free tax preparation site where they can

    > have their

    > > taxes electronically prepared for free. For more information about

    > VITA,

    > > check the DOR web site at:

    > http://www.revenue.wi.gov/faqs/pcs/vita.html

    > > <http://www.dor.state.wi.us/faqs/pcs/vita.html> and typing in

    > VITA.

    > >

    > > By e-filing a return, the refund can be directly deposited into the

    > > taxpayer's checking/savings account within a matter of days, all

    > free of

    > > charge.

    > >

    > > However, many residents do not have a checking/savings account. To

    > help the

    > > 'unbanked' avoid a RAL, several dozen VITA sites have partnered

    > with local

    > > financial institutions to offer taxpayers the opportunity to open

    > a personal

    > > checking/savings account while visiting the VITA site. Opening an

    > account

    > > would allow a taxpayer to receive a refund via direct deposit

    > within a few

    > > days. In addition, the new account holders would also be able to

    > build their

    > > credit histories and more easily save money by not having to pay

    > for

    > > check-cashing services.

    > >

    > > Statistical Information:

    > >

    > > * In 2004, approximately 130,000 Wisconsin taxpayers paid

    > about $32.5

    > > million in RAL and associated fees, according to a report by the

    > Wisconsin

    > > Council on Children and Families.

    > >

    > > * An average tax refund of $2,000 can carry RAL-associated

    > fees of

    > > $250 or more. That is equivalent to paying an annual interest rate

    > of 521%

    > > for a 10 day loan.

    > >

    > > * Plus, if a refund is delayed or denied for any reason, the

    > consumer

    > > is responsible for paying back the loan as well as all fees.

    > >

    > > * Before electronic filing, these high interest loans may

    > have been

    > > attractive because paper tax returns would take several weeks to

    > process.

    > > But with today's e-filing, state and federal refunds are available

    > within a

    > > matter of days when deposited directly into a checking or savings

    > account,

    > > all at no cost to the taxpayer.

    > >

    > > * For more information on free tax preparation or RAL scams,

    > go to

    > > www.revenue.wi.gov <http://www.dor.state.wi.us/index.html> ,

    > > www.wisconsin.bbb.org <http://www.wisconsin.bbb.org/> , or call

    > > 1-800-829-1040.

    > >

    > > Partners: Wisconsin Department of Financial Institutions, Wisconsin

    > > Department of Revenue, Wisconsin Department of Agriculture, Trade

    > and

    > > Consumer Protection, Wisconsin Council on Children and Families,

    > Wisconsin

    > > Bankers Association, Community Bankers of Wisconsin and Wisconsin

    > Credit

    > > Union League.

    > >

    >

    >








  7. #7
    Super Moderator
    Join Date
    Aug 2007
    Posts
    276
    Downloads
    0
    Uploads
    0

    Default Tax Refunds: You Don't Have To Pay To Borrow Your Own Money

    You Don’t Have To Pay To Borrow Your Own Money
    For Release: December 20, 2006
    Contact: Meredith Helgerson, Communications Officer, (608) 261-2271

    MADISON – Earlier than usual, the Department of Revenue, the Department of Financial Institutions and the Department of Agriculture, Trade and Consumer Protection, warn of a new tactic some tax preparation firms are using to lure new customers into high cost advancement loans well before tax season begins. The Wisconsin Better Business Bureau also has announced recently that Advanced Fee Loans were the worst scam in Wisconsin in 2006.

    Tax preparation firms and their banks are offering a new type of tax Refund Anticipation Loan (RAL) available before the traditional tax season even begins. Called “Holiday RALs” or “pay-stub RALs” the RALs are based on an individual’s pay stub. The RAL is secured by a taxpayer’s “expected” refund, but does not reflect actual refunds, which can be adjusted for liens and levies or other sources of income. A RAL is also accompanied by various types of fees and charges.

    Some tax preparation firms are also requiring a $50 “deposit” for each loan. The deposit is only returned when the taxpayer returns to the same office to file the tax return.

    Essentially, taxpayers who use RALs, are paying a high price to borrow their own money. These loans have high, often hidden costs.

    “ Wisconsin should know that a RAL is not the only resort – other options are available,” stated Secretary of Revenue Michael L. Morgan. “Volunteer Income Tax Assistance (VITA) sites are available to provide free tax preparation assistance around the state.”

    Taxpayers can visit any free tax preparation site where they can have their taxes electronically prepared for free. For more information about VITA, check the DOR web site at: http://www.revenue.wi.gov/faqs/pcs/vita.html and typing in VITA.

    By e-filing a return, the refund can be directly deposited into the taxpayer's checking/savings account within a matter of days, all free of charge.

    However, many residents do not have a checking/savings account. To help the 'unbanked' avoid a RAL, several dozen VITA sites have partnered with local financial institutions to offer taxpayers the opportunity to open a personal checking/savings account while visiting the VITA site. Opening an account would allow a taxpayer to receive a refund via direct deposit within a few days. In addition, the new account holders would also be able to build their credit histories and more easily save money by not having to pay for check-cashing services.

    Statistical Information:

    In 2004, approximately 130,000 Wisconsin taxpayers paid about $32.5 million in RAL and associated fees, according to a report by the Wisconsin Council on Children and Families.
    An average tax refund of $2,000 can carry RAL-associated fees of $250 or more. That is equivalent to paying an annual interest rate of 521% for a 10 day loan.
    Plus, if a refund is delayed or denied for any reason, the consumer is responsible for paying back the loan as well as all fees.
    Before electronic filing, these high interest loans may have been attractive because paper tax returns would take several weeks to process. But with today’s e-filing, state and federal refunds are available within a matter of days when deposited directly into a checking or savings account, all at no cost to the taxpayer.
    For more information on free tax preparation or RAL scams, go to http://www.revenue.wi.gov , http://www.wisconsin.bbb.org, or call 1-800-829-1040.
    Partners: Wisconsin Department of Financial Institutions, Wisconsin Department of Revenue, Wisconsin Department of Agriculture, Trade and Consumer Protection, Wisconsin Council on Children and Families, Wisconsin Bankers Association, Community Bankers of Wisconsin and Wisconsin Credit Union League.

  8. #8
    Super Moderator
    Join Date
    Aug 2007
    Posts
    276
    Downloads
    0
    Uploads
    0

    Default Re: Tax Refunds: You Don't Have To Pay To Borrow Your Own Money

    Great article, Liss!

    We got stuck doing the RAL one year, and it cost us almost $400 of
    our tax money!! The only reason we did it was becuase we needed our
    refund quickly, and the cost we were told to do the taxes at H & R
    Block, and the actual end cost were WAY different.

    We were told when we called that for easy cases (which ours is!) it
    starts at $85. We expected to pay maybe $100, and had no extra cash.
    At the end, we were shocked to learn it would cost us almost $250
    for having them do our taxes! In order to bypass paying outright, we
    could do the RAL, and it would come out of the money, including the
    extra charge.

    I was NOT happy. Last year, we got them done for free at H & R Block
    because a friend worked there. This year, I'm talking hubby into
    just buying the H & R Block Tax Cut program, and using it to prepare
    ours and other people's for them. It's $50, but it has garunteed
    audit protection with it, where as the cheaper programs and the free
    ones don't.

    We've never been audited, but I'm not willing to test the theory,
    either.

 

 

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •