Waiting for the day that your tax refund will arrive at your account is definitely a frustrating task, particularly if you need the money right away to close an investment transaction. The great news is that you can apply for a tax refund advance, a short-term loan made to furnish you quicker access to your money than waiting in vain for your tax refund.
Similar to other countries, taxpayers in the United States frequently apply for tax refund loan through a reputable tax preparer service that charges a fee for the paperwork preparation. This fee however should not be based on the amount of the projected refund as per the rules of the IRS. There is also additional cost brought about by the service for opening a bank product and maintaining a short-term bank account.
The National Consumer Law Center released a report that approximately 12 million taxpayers applied for these loans in 2004. Due to the availability of e-filing and the IRS partnerships that permit taxpayers to file for this loan for free, United States’ taxpayers can now get their tax refunds within two to three weeks or as fast as ten days if they opt to procure their money through direct-deposit.
Tax Refund Loan Approval
Within 24 hours from the submission of loan application, the tax preparer service will get a confirmation from the IRS that your paperwork doesn’t have any numerical errors and discrepancies and you don’t have delinquent loans or liens. This indicates that there is a huge possibility that the IRS will reimburse the refund within weeks, putting off deceptive income reporting. By this time, the tax preparation service will write a check in your name, in the amount of the estimated refund, less the commission fees.
These loans are controversial for the reason that like title and same day cash loans, the tax refund cash advance is a high-revenue, low-risk loan that is being offered to the poor working class. If you are decided to apply for this loan, an investing advice to keep in mind is to only resort to this option if you strongly believe that the investing opportunities presented to you will outweigh the interest you paid for the loan.