For those of you who file taxes, and those of you who will soon be doing so, I found the HELPFUL article below on the Web.
Hope the information contained in the article helps someone.
Jane
(ARTICLE EXCERPT)
Motley Fool
Tax Cheats Are Out to Get You
By Dayana Yochim
Itching to get your due from Uncle Sam? There are plenty of folks -- legit and otherwise -- who will happily help you get a faster or bigger refund. My advice? Don't fall for any of the come-ons, no matter how tempting they sound.
The best-case scenario: You'll pay triple-digit interest rates to borrow your own money for a few weeks. Worst-case: You'll share a jail cell with the con who promised to sweet-talk the IRS on your behalf.
Loathsome but legal
The most common tax-time pitch is the "instant refund," which gives you access to your refund money to tide you over until the IRS sends the official check. In 2004 (the most recent stats available), one in 10 taxpayers got a short-term refund anticipation loan (RAL), according to the Consumer Federation of America and the National Consumer Law Center.
Although RALs are offered by legit businesses, the loan terms rival those of the neighborhood loan shark. Small fees ($30 here, $59 there) add up. On the average refund this year ($2,150), forking over $100 to cover loan costs puts your effective APR at 178%. (No, that's not a typo.) Add in admin fees and you're looking at a 235% APR. (Again, not a typo.)
The hidden fees and misleading marketing of RALs have gotten two tax-prep giants in trouble with the law. A few years ago, H&R Block found itself staring down the business end of a class action lawsuit for neglecting to reveal e-filing, loan document preparation, and administrative fees that could triple the cost of a customer's loan. Just last month, Jackson Hewitt agreed to pay $4 million in consumer restitution for similar abuses. (FYI: Both companies still peddle these products, though probably with more frank fee disclosure.)
Need speed?
If you really can't wait for your refund check, consider e-filing your tax return. (The average fee for electronic filing is $23, according to the National Society of Accountants.) ...
(Click on link below for FULL ARTICLE)
http://biz.yahoo.com/fool/070206/117076921...
Posted By: Jane L. Wilson
Thursday, February 8th 2007 at 12:53PM
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