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Consumer credit advisors are hailing the newest Refund Anticipation Loan approved by the IRS. “First-generation RAL’s only offered a few days relief while the IRS was processing the return,” explained Tom Feingold of Consumer Credit Consortium. “Then came Instant Money using the final paystub a month before the W-2 could be issued or the return filed. The latest version is based on next year’s refund as determined by a new W-4 withholding statement given to the employer. In some cases the borrower can get money more than a year and a half before filing the return—and the loan can be set to any level up to 100% of earnings!”
In the past such bank products have been criticized for exploiting taxpayers who had not planned ahead. The new W-4 RAL’s take full advantage of planning opportunities already built into the tax system. “Instead of giving an interest-free loan to the IRS all year long like most workers,” said Feinberg, “you can get an early start on spending the money you are going to earn.”
Consumer credit advisors are hailing the newest Refund Anticipation Loan approved by the IRS. “First-generation RAL’s only offered a few days relief while the IRS was processing the return,” explained Tom Feingold of Consumer Credit Consortium. “Then came Instant Money using the final paystub a month before the W-2 could be issued or the return filed. The latest version is based on next year’s refund as determined by a new W-4 withholding statement given to the employer. In some cases the borrower can get money more than a year and a half before filing the return—and the loan can be set to any level up to 100% of earnings!”
In the past such bank products have been criticized for exploiting taxpayers who had not planned ahead. The new W-4 RAL’s take full advantage of planning opportunities already built into the tax system. “Instead of giving an interest-free loan to the IRS all year long like most workers,” said Feinberg, “you can get an early start on spending the money you are going to earn.”
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