News Do Not Borrow Your Money! Stay away from Tax Refund Anticipation Loans

News Do Not Borrow Your Money! Stay away from Tax Refund Anticipation Loans

Thursday, January 15, 2009

Office of customer Affairs and Business Regulation Rachael Liebert 617-973-8767

Department of income Robert R. Bliss blissr@dor.state.ma.us 617-626-2369

Boston – the working office of customer Affairs and Business Regulation (OCABR) and Department of income (DOR) advise taxation payers to avoid income tax reimbursement loans, also referred to as reimbursement expectation loans (RALs). RALs are secured by and repaid from a pending tax refund that is federal.

a reimbursement expectation loan is a risky idea because it must certanly be paid back regardless of if the taxpayer’s reimbursement is rejected, not as much as anticipated, or frozen. The lender may send the account to a debt collector if the taxpayer cannot pay back the RAL.

As the loans are temporary, the annualized rates of interest are high. «No one needs to have to pay for interest on the income tax reimbursement,» stated Massachusetts DOR Commissioner Navjeet K. Bal.

Workplace of customer Affairs & company Regulation Undersecretary Dan Crane recommends taxpayers to think about the after alternatives to RALs:

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