Announcement

Collapse
No announcement yet.

Filing Taxes Already

Collapse
X
Collapse
 
  • Page of 2
  • Filter
  • Time
  • Show
Clear All
new posts
Previous 1 2 template Next
    #1

    Filing Taxes Already

    Good Day Boardees,

    I was just wondering...About a month ago one of my clients ask if he could file his taxes already. I told him no, that the first day to file will be Jan 12th, but he would be able to file Jan 2-11th with his last paycheck stub.

    He told me he thought some place down the street from him was already preparing taxes, and today when I talked to him he confirmed that there is actually a place doing taxes already.

    I told him, that I don't know how they are doing this, especially since the 2006 year hasn't been completed. That the only thing I can think of is that these people are doing a tax estimate, and offering high interest rate loans.

    Has anyone else heard of any such thing?

    Thanks

    Shawn Miller
    Atlanta, GA
    Shawn D. Miller
    Atlanta, GA

    "If you stand on the shoulders of a giant...you will see further than a giant!"
    Tags: None
    #2
    Loans

    Good 'n Shawn: I think you've got it right. Loan sharks disguised as nationwide tax firms are making loans based on final paycheck stubs, instead of filed tax returns. These are taxpayers who have a history of getting refunds and whose paystubs are in line with prior incomes.

    So the loan is made and the interest rate is even more usurious than ever.

    Today my friend (an employer) got a phone call from an employee who had not received her final pay stub because the office was shut down. She lives in Kentucky and begged to drive down and get it because she needed it for a loan.

    This is what is going on. Truth is stranger than fiction.

    Ron J.

    Comment

      #3
      Refund Anticipation Loans

      H & R has been offering them since late November/early December - something like that. I'm not sure exactly how they work but I'm sure they are nothing more than a high priced refund anticipation loan. I see signs in the window - get $1,500.00 back now at our H & R offices.

      Comment

        #4
        What happens when they end up owing and have to pay this money back? I bet it hits the fan!

        Comment

          #5
          Nothing will happen

          Geeko, absolutely nothing will happen. A large hunk of such money will simply be uncollectible. The RAL people will be somewhat assured of a refund by checking prior year returns, and they will stop short of paying the full expected refund.

          What WILL happen is that the RAL underwriters will simply add more onto their fee. Instead of charging 500% they will probably charge 700%. This extra money will be used to cover the bad debts. There will be SOME bad debts that happen as you have portrayed, but not many.

          And all of this will be legal.

          Geez....

          Comment

            #6
            Yeah your right. I guess they don't have that many bad debts. As you said I'm sure prior year returns are looked at as far as refund status.

            On a side note:

            I find this whole RAL thing interesting. I did it for the 2004 tax year. Had two clients that got the RAL. On one the local banks would not cash the check because it wasn't from Jackson Hewitt or H&R. So the customer had to wait 10 days for the money to be put into her bank account anyways. She was really unhappy. The other customer was a direct deposit which went through fine. What was really funny, last year the customer that had to wait on the refund asked me to do the RAL again. Told her I quit doing it. Strange huh? I did refund her tax preparation fees because I was kind of using her as a test to see if everything went okay. I don't know maybe she thought she would get the tax prep fees back again.

            Comment

              #7
              What I find interesting is that the loan shark who works fro the local mafia boss does not charge these kinds of rates yet that is illegal . But if your name is JH or H&R then it is . I love this country but some of our laws are just twisted.

              Comment

                #8
                not those names

                >>if your name is JH or H&R<<

                No, not those names. Bank of Santa Barbara and its ilk. Banks are specifically excluded from the usury laws. (That's because they wrote the laws themselves.)

                Comment

                  #9
                  Originally posted by jainen
                  >>if your name is JH or H&R<<

                  No, not those names. Bank of Santa Barbara and its ilk. Banks are specifically excluded from the usury laws. (That's because they wrote the laws themselves.)

                  Jainen you are correct it is the Banks . But without H&R and JH these crimes would not be perpetrated.

                  Comment

                    #10
                    So far this month

                    >>But without H&R and JH these crimes would not be perpetrated.<<

                    Yeah, right. So far this month I have been "pre-approved" for more than $70,000 in unsecured loans! H&R is just another marketing channel.

                    Comment

                      #11
                      Additional Question

                      I have someone asking, "If they go to H&R Block for the advance loan, are they committed to using them to prepare their taxes?"

                      She says that she was given the option to either pay the loan back in payments, or to have it taken out of her income tax check.

                      She was thinking that if they decided to make payments, it will allow her to go where she wants to do her taxes

                      Is this thinking true?


                      Shawn Miller
                      Atlanta, GA
                      Shawn D. Miller
                      Atlanta, GA

                      "If you stand on the shoulders of a giant...you will see further than a giant!"

                      Comment

                        #12
                        Don't know for sure, but

                        Originally posted by TheGoodnShawn
                        I have someone asking, "If they go to H&R Block for the advance loan, are they committed to using them to prepare their taxes?"

                        She says that she was given the option to either pay the loan back in payments, or to have it taken out of her income tax check.

                        She was thinking that if they decided to make payments, it will allow her to go where she wants to do her taxes

                        Is this thinking true?


                        Shawn Miller
                        Atlanta, GA
                        it makes sense that they'd do it if they ran a credit check on her and it was okay. They'd stand to make a lot more money letting the interest run for months and months rather than wiping it all out by April 15th.

                        A Jackson-Hewitt franchise manager -- one "ecb34691" -- lurked hereabouts last year and answered a few general questions for me about their policies. Their operation is similar to Block's, so maybe he might answer your question if he sees his handle. I'll post it (I'm curious about this too).

                        Comment

                          #13
                          BB:
                          At JH they have 3 options from least expensive to most expensive. They can file directly with the IRS through us (or by themselves) and pay off the loan directly with the bank by 2/19. They can file through us with a non-loan bank product, have the loan paid off and receive either a net check through our bank or a direct deposit to their own bank after IRS has processed their return. The last option is a RAL with its associated fees. There is NO requirement that they return to the JH office to do their return, except that they have already pre-paid some $'s of the total tax preparation when they received the Money-Now pre-file loan, the balance being paid when they reurn.

                          Comment

                            #14
                            geelgirldany

                            Originally posted by geekgirldany View Post
                            What happens when they end up owing and have to pay this money back? I bet it hits the fan!

                            What hits the fan? I OD'eed a few weeks back on laxatives. As the Irish would say, "Oh ****."

                            Is that what hit the fan?

                            Comment

                              #15
                              IMAL Loan

                              Gone to lunch
                              Last edited by Oxtrainer; 01-02-2007, 08:43 PM. Reason: too contraversial

                              Comment

                              Previous 1 2 template Next

                              Disclaimer

                              Collapse

                              This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

                              Working...
                              X