The state Office of Consumer Affairs and Business Regulation has urged taxpayers to shun so-called Refund Anticipation Loans (RALs). In their press release, DOR Commissioner Navjeet K. Bal is quoted as saying, "Paying an interest cost on your refund doesn't add up."
RAL's promise quick delivery of a refund, but usually at a steep price. Right now, the average taxpayer who files their state return electronically and designates direct deposit should expect to receive their entire refund in 3.5 business days. The money you save by waiting just a few days is worth it.
Sure, an RAL lets you walk out the door with money in your pocket, but it is substantially less than you would otherwise receive. The fees charged for RAL's are often more than the cost of having your return prepared.
A refund anticipation loan is also a risky proposition because it must be repaid even if the taxpayer’s refund is denied, less than expected, or frozen. If the taxpayer cannot pay back the RAL, the lender may send the account to a debt collector.
If you tax preparer tries to steer you to an RAL, find one who won't.
MA Filing Extension to April 18th Announced posted on Apr 15
The Department of Revenue’s WebFile tool, which allows individuals to electronically file state personal income tax returns, has experienced delays due to heavy volume over the past few days. DOR is actively working to resolve this issue, and has extended the deadline for taxpayers to …Continue Reading MA Filing Extension to April 18th Announced
WARNING: Tax Lien Notices NOT issued by DOR Making the Rounds posted on Mar 13
Here’s another unfortunate addition to the list of financial things to protect yourself from. DOR has learned that letters of questionable origin are being sent to taxpayers with outstanding tax liens. Although these notices show amounts from actual tax liens, they are not from the Massachusetts …Continue Reading WARNING: Tax Lien Notices NOT issued by DOR Making the Rounds
Don’t Let a Hacker Steal YOUR Refund posted on Mar 11
There are some rabbit holes you definitely don’t want to fall down during tax season. One such hole, and an increasingly-common nightmarish scenario, is finding out your tax refund has been stolen. In a recent article, Allison Martin of Money Talk News was the bearer …Continue Reading Don’t Let a Hacker Steal YOUR Refund