Good Riddance to Tax Refund Loans?http://www.fool.com/investing/value/2008/01/04/good-riddance-to-tax-refund-loans.aspx Rick Aristotle Munarriz
January 4, 2008
If the only two certainties in life are death and taxes, what about the death of the tax-refund anticipation loan?
The Internal Revenue Service is considering putting restrictions on this loan, a product that tax preparation specialists such as H&R Block (NYSE: HRB ) and Jackson Hewitt (NYSE: JTX ) have been promoting for years.
The convenience of receiving less money up front, rather than a full refund in weeks or months, has been a blessing for cash-strapped filers. But the IRS is concerned about possible fraud and a practice that lends itself to unreasonably high rates.
I can vouch for the fraud part. Someone stepped into an H&R Block office