The observed relationships hold in the analysis that limits the sample to those with below-median propensities to use AFS products, as higher objective knowledge is associated with reduced odds of AFS use for all behaviors whereas higher subjective knowledge is associated with greater odds of AFS use when significant (not significant for tax refund anticipation loan
or pawn shop use).
In a program manager technical advice memorandum, the Office of Chief Counsel (OCC) advised on a number of issues regarding returns where a preparer, after issuing the taxpayers refund anticipation loans
, increased the amount of the charitable contribution deductions claimed on the returns without the taxpayers' knowledge or consent to increase the refund received from the IRS.
* THERE WOULD BE NO refund anticipation loans
, of course, without tax refunds.
While Smyth's decision to shift marketing efforts away from refund anticipation loans
, or "Rapid Refunds," led to a significant drop off in that highly profitable business line, H&R Block suffered from the bigger problem of migration of people to do-it-yourself digital tax preparation.
It came as no surprise, then, when Santa Barbara Bank & Trust, a self-described "community bank" in California, announced in January that it was intending to use its $180 million in bailout money to make high-priced refund anticipation loans
, known as RALs.
White, The Ethics of Refund Anticipation Loan
Consumer Information: An Exploratory Study, 111 BUS.
The regulations define a tax refund anticipation loan
as "a closed-end credit [transaction] in which the covered borrower expressly grants the creditor the right to receive all or part of the borrower's income tax refund or expressly agrees to repay the loan with the proceeds of the borrower's refund." (42) In other words, the tax refund anticipation loan
is a loan against the expected income tax return of the Soldier.
Most people wanting a Refund Anticipation Loan
(RAL) now are able to get the full refund, including the earned income credit, in one check within 24 to 48 hours of filing.
After a month spent push-starting their '91 Suzuki Sidekick in the rains of winter, Heather Epp and her boyfriend, Jack, could see an answer to their problems: A tax refund anticipation loan
, which they hoped would let them get their hands on their refund money in a day or two so they could buy a rebuilt starter motor.
In a letter to Congress, the AICPA showed support for the concept of regulating all tax return preparers and refund anticipation loan
providers, but also raised some public policy and drafting concerns about the registration proposal which passed the Senate in May.
And Jackson Hewitt Tax Service signed an agreement late last year with Rent-A-Center, so that people can buy used furniture with a refund anticipation loan
, she said.
Facts: Amount of taxpayer refund $930 Fee charged for electronic filing (22) Refund net of electronic filing fee $908 Fee charged for Refund Anticipation Loan
(35) Refund net of all fees $873