I understand that during this tax season, many of you are looking to get a rapid refund from a tax preparation company.
The most common question that I've been asked regarding a rapid refund is can you get one if you've been audited. The answer is yes, and here's why.
When you go to one of those tax preparation companies, they calculate what your refund will be before they submit your tax return to the IRS. These companies give you a loan in the amount of your tax return minus a fee, and that's a rapid refund. It's a loan based on the hope that the IRS will accept the tax preparation company's return they filed for you.
If your return is accepted and you don't get audited, your regular refund will go to the tax preparation company. However, if you do get audited and the tax preparation company doesn't get the refund, you still owe them that rapid refund loan.
The best course of action is this: if you file your return electronically, you'll get the money within two weeks. It's better to hold out those couple of weeks rather than pay a tax preparation company a portion of your return to give you a loan for a tax return that hasn't even been submitted to the IRS. For more information, read my prior article "Filing Your Tax Return: Rapid Refund or Rapid Trouble."
Now you have the smoking gun... Use it!
Labels: Tax Filing, Tax Refunds