But read the fine print before signing up for one of these often-criticized refund anticipation loans. The loans allow taxpayers to pocket their tax refund in just two days, instead of waiting two to three weeks for a refund after filing electronically or up to two months after mailing in their returns. The catch is that there can be fees and finance charges attached, and these can translate into huge annual percentage rates, or APRs. For smaller or shorter loans, the APR can be even higher. N.J. Despite falling fees, the loans still have critics.
Some critics also are uneasy about a new twist on the loans.
The IRS halted an earlier version of this program in 1994 because of concerns that the loans encouraged people to file fraudulent returns to trigger refunds, get a refund loan and disappear before the cheating could be uncovered. This time around, the IRS is hoping that increased collaboration with tax preparers and financial institutions will reduce fraud. That responsibility raises ethical concerns for some tax pros. But tax preparers who are participating in the program said they don't view it as a big change from their normal practice. And a spokesman for the IRS notes that it has always asked tax preparers to report potential cases of fraud.