I’m sure that you have seen those ads about getting your refunds fast in two to three days. Well, these are not really your refunds but a loan from a bank that charges you fees. Your anticipated refund is just a collateral. It should be noted that taxpayers can get their refunds in as little as 10 business days if they file electronically and have those deposited directly to their bank accounts. So what’s seven more days of wait.

According to Los Angeles Times,

The Internal Revenue Service said recently that it was considering curbing tax refund loans offered by tax preparers such as H&R Block Inc. and Jackson Hewitt Tax Service Inc.

More than 12 million people take out such loans each year to in effect get advances against their refunds, according to a study by consumer groups, which have long criticized the fees on the loans as excessive.

The IRS suspects that some preparers may be inflating refunds to increase the size of the loans they make.

“A preparer who inappropriately inflates the amount of a refund is able, directly or indirectly . . . to collect a higher fee,” the IRS said in a notice seeking public comment about the potential refund-loan regulations, which would not go into effect until next year.

Source: Los Angeles Times