Barry G. Fowler, EA, leading expert in tax resolution issues and CEO of Taxation Solutions knows that this year could compel more taxpayers to be tempted to apply for Refund Anticipation Loans with the shutdown slowing down the refund process, and he urges readers to resist.
Houston, TX – February 28, 2019 – Barry G. Fowler, CEO of Taxation Solutions, posted a new article on the company website entitled “Beware Refund Anticipation Loans,” in which Mr. Fowler points out some of the reasons to avoid them while offering other solutions.
Fowler states, “This year, perhaps more than any other, many taxpayers are going to be tempted to apply for a Refund Anticipation Loan (RAL).” He elaborates, “With the government shutdown putting IRS workers behind schedule and the new tax law coming into full bloom this tax season, taxpayers cannot be certain of either when they’ll be getting their refund or if they’re getting one at all. This is the kind of environment that makes taxpayers susceptible to falling for the promises made by RAL lenders.”
“If you really need cash and simply cannot wait for your tax refund,” says Fowler, “do your homework before applying for an RAL. Be very clear that it is a loan that must be repaid.” He continues, “The loan is calculated based on your ‘anticipated’ tax refund. The RAL lenders are private and are not in any way associated with the IRS. And, you could be denied the loan.”
According to Fowler, “If you apply for and are denied an RAL loan, you could be responsible for a variety of fees. Many lenders charge application fees, credit check fees, and plain old “junk” fees. A strong reason to hold out for your tax refund is that some of the lenders make money mostly from the fees and have no intention of giving the loan. They’re major incentive is getting you to apply for the loan. “
Fowler urges taxpayers to stay on the straight and narrow. He writes, “There are other ways of accessing funds if you simply cannot wait for your tax refund. But, you must take the high road.” Fowler talks about one scenario in which, “Some taxpayers will file their returns early and lie on their returns. They’ll get a refund, then file an amended return and fix their mistake. Don’t do it.” He adds, “It’s too risky and can raise red flags at the IRS if you file amended returns regularly. In the first place, it’s illegal. You sign your tax return under the penalty of perjury, so if you intentionally file a false return, you could be in big trouble. And, you may even have to pay an additional fee to file an amended return.”
The entire article can be read at https://www.taxationsolutions.net/beware-refund-anticipation-loans/
About Barry G. Fowler, EA
Barry G. Fowler founded Taxation Solutions out of a genuine concern for the IRS issues his clients face, many of whom are self-employed, contract employees, or entrepreneurs. For his contributions to his profession and expertise in tax resolution and financial planning, Fowler has been featured as one of America’s Trendsetters on CBS and Yahoo, and as a Premier Expert in Inc. Magazine. He has been instrumental in helping hundreds of people resolve complex tax issues with the IRS.
Fowler is licensed to represent taxpayers before the Internal Revenue Service, and is a longstanding member of several tax industry professional organizations: NAEA, NATP, TSEA, ASTPS.