Do You Expect A Tax Refund? NexTax offers several Options.
Refund Anticipation Loan (RAL)
An RAL is actually a bank loan which allows you to receive funds in less than 48 hours. NexTax strongly advises tax clients to avoid RALs due to their extremely high costs. The RAL is actually a loan. Interest fees can be as high as 30% to 40%! And due to the recent financial crisis, there is a good chance banks may reject the loan application anyway. The IRS has eliminated the 'debt indicator' for banks attempting to offer RALs, thereby making it a less likely option in 2012.
Refund Transfer (RT)
The RT is the preferred way of processing your refund, as it is less expensive than an RAL and usually is received within 8 to 16 days. This is not a loan, so there are no bank fees and it cannot be rejected. Your refund is processed by the IRS and directly deposited into your bank account. NexTax also offers the option of having your refund check print at NexTax offices for you to pick up. One benefit of the RT option is that tax preparation service fees can be deducted from your refund, thereby eliminating any 'up front' costs for tax preparation.
US Mail
Although we do not recommend it, you always have the option for the IRS to process your tax return and mail your refund to you. This can take up to two or three months before you see the check in your mail box.
