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Posted by jsica on January 14, 2008, 3:57 pm
Please log in for more thread options > > Condor wrote:
>
> >> You're correct that IRS cannot bar anyone from offering a loan in
> >> anticipation that the lender will be repaid from the taxpayer's
> >>refund.
>
> > Thanks all for the posts and insight, but I don't think anyone has
> > addressed my original point of legality and jusridiction questions.
>
> > The point is "The Internal Revenue Service said Thursday that it was
> > considering curbing taxrefundloansoffered by tax preparers such as H&R
> > Block Inc. and Jackson Hewitt Tax Service Inc. "
>
> > That's what I was asking about. Regardless of whether or not it's "Fees"
> > or "interest rate", or whether or not there some computer-gook about
> > verification of the return (so, what if they stopped doing this; that's
> > not the point). , etc. etc. etc., no post I've ready deals with the
> > legality and jurisdiction issue. Of course, I realize that this is a
> > *tax* forum, not a *legal* forum, but I am still unsure how they can do
> > this.
>
> > Oh well, hopefully I'll never have to enter into this type of agreement.
>
> As I said above, IRS published an ANPRM in the Federal Register on Monday,
> January 7. If you want to read it, open the link below and scroll down the
> alphabetic list of agencies to Internal Revenue Service. See the entry
> listed as: "PROPOSED RULES
> -- Guidance Necessary to Facilitate Electronic Tax Administration Updating
> of Section 7216 Regulations."
>
> http://www.access.gpo.gov/su_docs/fedreg/a080107c.html
>
> Internal Revenue Code § 7216 governs tax professionals' obligation to keep
> their clients' tax information confidential. Currently, the regulations
> allow a tax pro to disclose client information for purposes of a RAL with
> the client's voluntary consent. The notice in the Federal Register is
> inviting comments on whether IRS should rescind the taxpayer's option of
> consenting to disclosure of his or her tax information to a RAL provider.
> If IRS were to adopt such a change, it may end up being a de facto bar to
> offering RALs, however the RAL providers probably would find for other ways
> to hawk their products without running afoul of the regulations.
>
> Condor
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are atwww.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>- Hide quoted
text -
>
> - Show quoted text -
IRS does regulate tax preparers. In fact they have a couple RAL
regulations to0. Within their jurisdiction to prohibit RALs from being
offered in a tax preparation location. However, the IRS (actually the
Taxpayer Advocate) tried to influence IRS policy making by actually
including the RAL language in the final IRS 7216 regs. Cooler heads
prevailed within the IRS and argued that IRS does not make policy
decisions based upon anecdotal infernece. Hence, the ANPRM - long way
to go before a reg will be issued (if at all). The real issue remains
that the Taxpayer Advocate and certain consumer groups (CFA/NCLC) are
on a witch hunt to rid the loans totally. It seems to me to be very
reckless government when an appointed high level official continually
tries to influence not only the IRS to act, but Cogress as well... all
without evidence nor even asking the whales in this case if they want
to be saved. The real indictment here is not on the RAL industry. They
provide a fairly priced product (most cases the lowest cost option
available to the people who use them - we can debate that later) to
people who need their money quicker than the IRS is able to deliver
it. In fact, RALS enjoy a 70% repeat factor and an 85% satisfaction
rate. Not many products can boast that. The TPA will tell you though
that they really don't know what they are saying or doing and need to
be guided. I think the TPA needs to be guided on this one. Why doesn't
she tell congress not to take lower income American's money to start
with? Thats the real shame....
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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