A Tax Refund Consolidation Loan (uran) is essentially a loan offered by a private lender on the basis of an anticipated federal tax refund. Tax refund loans are available starting in January through late in April, depending on the filing status of the taxpayer. Generally, taxpayers are charged interest and fees to obtain a tax refund loan. A Tax Refund Loan is a great option for tax filers who do not have enough savings to pay for their entire tax return. Refund loans allow tax filers the option of paying the amount they owe to the IRS in cash, taking it out of their checking or savings account, or getting a tax refund check with the amount of money already refunded to them.
Refund loans are commonly used by taxpayers to pay their taxes before April 15. Taxpayers can obtain tax refund loans from their local hometown tax preparer. There are also a number of online tax preparation facilities. Some tax preparer websites provide free tax return forms; some tax preparer companies charge a fee. The IRS offers the Taxpayer Credit which is aimed at helping taxpayers take care of their taxes.
Tax refund loans can be issued by any tax preparation company, although they often prefer to work with a local lender. Local banks are usually more willing to offer lower interest rates as long as the taxpayer also provides proof that he or she will use the funds for tax purposes. These local tax preparation companies may also charge additional fees. Most local banks require applicants to supply security such as a savings account or home equity. Many tax preparation companies only accept applicants who have a checking or savings account.
Tax refund loans can be used for a number of reasons. If you are unable to come up with the money for your tax payments, then you could apply for an income tax refund loan to get back some of the money that you are missing. In some cases, you can borrow this money to pay for unexpected expenses. In both situations, you will be responsible to repay the loan as soon as you get your refund. If you are not able to make your loan payment, then you will owe the penalties and interest on this loan.
Many individuals and businesses to book travel and vacation plans in advance in order to take advantage of the low tax rates offered in the spring. However, it is possible to take out income tax refunds to cover these costs, too. In fact, if you are planning to take a cruise during tax season, or if you want to visit your favorite vacation spot during the fall, then this is an excellent time to consider getting an income tax refund loan. Many taxpayers benefit from this financial convenience.
In most cases, borrowers must repay their income tax refund anticipation loan when they file their taxes in the following year. However, there are many exceptions to this rule. The IRS has implemented a program that lets taxpayers borrow money against their tax refunds for a limited period of time. If a borrower needs cash before the end of his or her loan term, he or she must repay the full amount owed, even if they receive a refund.