Instant Tax Refunds On Their Way Out | The Washington Post | Ylan Q. Mui | 4/6/12

Logo of Internal Revenue Service, USAAccording to the Washington Post:

The era of the tax advance is over, the final chapter in a case study of how businesses can reap billions of dollars from the unintended consequences of government policies.

These high-cost, short-term loans were designed to take advantage of the inefficiency of the Internal Revenue Service, plugging the gap between when taxpayers filed returns and when their refunds came through — very much like a payday loan. An overhaul of the federal tax code intended to put more money in the hands of low-income families sent demand for the advances skyrocketing. At the industry’s peak in the 2000s, more than 12 million people a year took out refund anticipation loans — and paid more than $1 billion in fees.

For full article see: Instant tax refunds on their way out – The Washington Post.

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Center City Philadelphia General Practice Law Firm with emphasis on Criminal Defense, Family Law, Immigration, Real Property, and Wills/Trusts/ Estate Planning. Licensed in Pennsylvania and New Jersey.
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One Response to Instant Tax Refunds On Their Way Out | The Washington Post | Ylan Q. Mui | 4/6/12

  1. Pingback: Are You Getting, Or Hoping For, A Tax Refund? Why That Is Such A Terrible, Terrible Thought… « The Neosecularist

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