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Good Riddance to Tax Refund Loans?

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