The EIC, sheesh. Why not just make the taxpayers pay for
these (mostly) non-payers to have their tax return done for
free? Everything should be free!

Seriously, can't you have the EIC given back to you over the
course of a year via your paycheck (if working)?

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- quote -


- quote -

No, it's just like any other RAL administered by a financial
institution, wherein a one time bank account is established
for customer, who does not get any money within 24-48 hours,
but instead gets the net check at the normal direct deposit
time.

Or so I hear.

ChEAr$,
Harlan Lunsford

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- quote -

Does the ERO have the refund deposited to the ERO's account?

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Ed Zollars, CPA wrote:
- quote -

Gasp! Could Ed actually be referring to one certain
large nationwide company? I wonder........ Of course
the trick for IRS in order to "encourage" efiling is to
follow the states' example of requiring those doing more
than..... 100?? 50?// 7? returns to efile, RAL or no.

- quote -

As far as I know (and remember I've ONLY been doing this
efile thing since 1989) given the 10 -17 days one must wait
for a direct deposit to one's own bank account (whether pre
existing or established on a one time basis by the RAL
provider) , that's not enough time as is for IRS to check
out anything; after all, most W2's aren't even at SSA yet,
let alone K1's, etcetc. So if Dept of Treasury could
speed things up to say.... 4 - 11 days, they still wouldn't
have any checking capability.

- quote -

There are also schemes outside of RAL's by which the ERO
makes a convenience check to customer (7 - 10 days) after
the Dept/Treasury has made the direct deposit, and this
convenience check is net of fees.

Now here's another idea, akin to what airlines are doing now
with really frequent fliers, e.g. businessmen. These can
register and are pre screened, along with fingerprint and I
think eye scans????/ anyway, this lets them walk to the
head of the line so to speak and speed through security,
since they are "trusted customers". Well, just as IRS has
"trusted customers" who are allowed to use eServices to
directly input a POA and instantenously obtain transcripts
of accounts, why not have "trusted taxpayers" who can
obtain quickie refunds?

Why not?

ChEAr$,
Harlan Lunsford, GC, and EA n LA

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Harlan Lunsford wrote:

- quote -

I doubt that certain purveyors of RALs would really want
that to happen <grin> . And it's important to note that some
of those are extremely high volume efile participants whom
the IRS might not want to offend, since it's possible they
might not find efile economically attractive without the RAL
fees.

As well, speeding up the process also increases the harm
that would be done if someone figured out how to game the
system--they could walk with a lot of dollars and skip town
before the IRS could figure it out.

As well, there will still be a market where the preparer
gives the RAL for the "convenience" of being able to deduct
their fee from the refund. As well, there's a real question
whether those that "can't wait" a couple of weeks for the
money would want to wait 48 hours either...

--
Ed Zollars, CPA
Phoenix, Arizona

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- quote -

"Disclosure" may work for rational, well thought out decisions, but ...

Does anyone really believe that more "disclosure" would be
effective in changing the RAL client's mind? From my
experience (in a previous life) the client brings in these
worthless pieces of paper called W2s and you promise them a
check for several thousand dollars in a few days. It's free
money. What more is there to disclose?

Or, how many people have actually stopped smoking because of
the labels on the cigarette packages?

--
Don EA in Upstate NY

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MTW wrote:
- quote -

And I'm sure that we all know the real solution, and I do
mean the REALLY real solution, is for Dept of Treasury to
speed up efile processing to the extent of direct deposit of
refunds within 48 hours.

Now that THEIRS is trying to get computer modernized and not
having to rely on manually transporting tapes through
airports to get to Martinsburg, they can do this.

Of course direct deposits make sense only for those with
bank accounts. I forgot.

ChEAr$,
Harlan Lunsford, EA n LA

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TheLurker <2qaz[at]comcast.net> wrote:

- quote -

I had thought the instant RALs did not pay on EIC amounts.
And if and when the EIC precertification goes into effect,
there may be more EROs who will extend the loan to include
EIC.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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I worked in a local franchise office that of course offered
these RAL's to customers. We had to describe to the client
all of their options, to efile & wait for their refund or
the RAL option. I support some sort of regulation but here
is my concern:

I worked in a low income area and a large percentage of the
clients would walk in and file a tax return so that they
could get one or more of the Federal credits like the EIC.
80% of these walkins could not pay the preparation fee ($50
to $120) and fully expected us, the franchise, to somehow
pay for it. Then they ask whether it could be taken out of
the refund and we explain that to do that it needs to go
through the bank & RAL process so they finally agree to that
because they have no other way to finance/pay for their
return. If they have to pay $200 to get $1000 that they
would not normally see, then it's an easy decision even if
you tell them they will be paying 200% for a 2 week loan.

The government is trying to reach out to more eligible EIC
taxpayers (about 40% don't file & collect in the Los Angeles
area) but we need to find a way to help these folk pay for
their returns as most of them are not up to preparing their
own return.

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Frederick Jorden wrote:

- quote -

Yeah, I thought it was interesting that some people consider
the problem significant enough to warrant city action. But,
in that case, I think it would make more sense to put
pressure on the IRS to institute "national" disclosure
reforms.

MTW

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MTW wrote:

- quote -

While I have refused to participate in the RAL game I think
local regulation is not the correct route. But the more
regulation in Washington will lead to more businesses being
driven to low regulation states like mine.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Check this out:

http://seattletimes.nwsource.com/htm..._loans16m.html

MTW

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