| Have you seen that ad for tax preparation | | | | can prepare your return competently and |
| software? You know the one I mean. It says | | | | accurately so that you pay the absolute least |
| that anyone, even a caveman - no, wait, that | | | | amount of tax possible (to be fair, H+R does |
| is a different commercial - even a "math | | | | have an ad that tells you they will pay the |
| impaired" or an "unorganized" individual can | | | | interest and penalty for their |
| prepare his or her own income tax return by | | | | mistakes).These chains are pushing Refund |
| simply using the software package.This is | | | | Anticipation Loans (RALs), which are very |
| pure bull! No tax preparation software is a | | | | profitable. While a great thing for Henry + |
| substitute for knowledge of the tax code. | | | | Richard and Jackson Hewitt, a Refund |
| And no tax preparation software is a | | | | Anticipation Loan is NOT a good thing for the |
| substitute for the services of a trained tax | | | | individual taxpayer. It is nothing more than |
| professional.As with any software program the | | | | a short-term loan at a usurious interest |
| rule is "garbage in - garbage out". If you | | | | rate. The interest rate on some of these |
| don't know how to enter the information, or | | | | RALs is triple-digit, similar to a loan |
| what information to enter, you will not get | | | | shark. A recent Washington State Journal |
| the best, or even the correct, answer.As a | | | | article reported that the interest rate could |
| professional tax preparer I attend several | | | | be as high as 521%, with more than 10% of the |
| tax preparation workshops, seminars, | | | | refund going to fees!Henry + Richard have |
| conferences and conventions during the year. | | | | gotten into a lot of legal trouble with their |
| I am constantly hearing instructors and | | | | RAL programs. In December H+R Block reached |
| participants alike discuss the problems with | | | | a $62.5 Million settlement with an estimated |
| their tax preparation software, the answer | | | | 8 Million customers in more than two dozen |
| often being that one has to override the | | | | states over Refund Anticipation Loans. But |
| system and "force" the correct entry.IRS | | | | they continue to aggressively promote RALs |
| statistics indicate that taxpayers using | | | | during the tax season because of the huge |
| do-it-yourself tax software spend an average | | | | profits.Unfortunately, Refund Anticipation |
| of between 6 and 10+ hours longer preparing | | | | Loans appeal most to, and take unfair |
| their tax returns (depending on the number of | | | | advantage of, the working poor and other |
| worksheets and schedules) than preparers who | | | | low-income taxpayers who need every penny of |
| did manual calculations. Further, the IRS | | | | their tax refund.If you need your refund |
| estimates that do-it-yourself software users | | | | quickly use direct deposit. With direct |
| spend an average of 10 to over 20 hours | | | | deposit your refund should be deposited into |
| longer than a tax preparer, again depending | | | | your bank account within 10 days. If that is |
| on complexity.H+R Block has sued the company | | | | not good enough investigate other methods of |
| that produces the tax software in the above | | | | short-term borrowing. Even a cash advance |
| mentioned ad, and has asked a federal judge | | | | from a credit card is "more better" than a |
| to shut down the advertising campaign.The | | | | Refund Anticipation Loan, providing you pay |
| bottom line is - if you don't know what you | | | | back the advance as soon as the refund |
| are doing do not rely on a tax preparation | | | | arrives.copyright (c) 2006 by Robert D Flach |
| software package to make up for your lack of | | | | LLCRobert D Flach is a tax professional with |
| knowledge. Using a tax professional will | | | | 34 tax seasons of experience preparing 1040s |
| save you time, aggravation and money!Speaking | | | | for individuals in all walks of life. He |
| of tax season ads, the commercials for the | | | | writes and publishes the free monthly online |
| Henry + Richard and Jackson Hewitt fast food | | | | newsletter STUFF AND SUCH ( and several other |
| tax preparation chains continue to emphasize | | | | websites, as well as several print |
| the fact that you can walk into their office | | | | newsletters and reports on tax planning and |
| and walk out with a check, and not that they | | | | preparation. |