CLARION LEDGER

JACKSON, MS
Circulalon= 115223
DAILY
0'112812009

Taxes: Customers urged

to research preparers
F ~ ~ B "Most of the time,
SeG01s and people who earn people are just
less than $42,000 can have their
taxes done for free by volunteers broke, and they need

I
at sites throughout the metro
area.
Last Year, uoydsaid about 70
percent of those who applied for
refund-anticipation loans were
approved. He expects t h e
approvalratetobelowerthisyear
because of the economy and the
IRS continually increasing
efforts to identify fraudulent tax
returns. . A
Jackson resident Mattie
Woodall said she doesn't get a
refundanticipation
she can't afford to .
add debt.
"There are a lot
of people laying
off now," the 66-
year-old said, not-
ing her husband
still works part
time. You have to
careful"
And while Fields doesn't want
the refund loan for herself, she
understands why people want
them.
%last of the time,people are
just broke, and they need money
*t now," the 46-year-old said.
"Ifeel like you have waited the
whole year, you ought to be able
money right now.'"
Jan~ceF~elds,taxpayer
based on emotion." Moak said.
"A loan may not be in your best
interestifyou'refilingyourtaxes
in February (and) ...you can rea-
sonably expect it in twoweeks."
Moaksuggestscustomersalso
research tax preparers before
choosing one by doing Internet
searches or checking with the
Better Business Bureau to see if
complaints have been filed
against the company.
For some, the tax refund sea-
son canbe aspendingseason. But
Sheny Rainey, president of Con-
sumer Credit Counseling%Nice
of Jackson suggests consumers
make plansfor spendingthemon-
ey.
She advises against using the
money as a down payment on big
ticket item.
This choice, she said, will
leaveyouwithanewmonthiybill.
She also su~gestsconsumers pay
for larger expenses such as auto
repairsor pay off Christmas debt.

It pays to wait,
to wait a few more days."
Bill Moak, president of the
BB
-nuoeis-f Mis-
sissppi, said if customen really
need the money immediately,
they should do research before
makinga decision about a refund
loan.
"Consumers need to shop
m m d and don't make decisions
"If yon can, use that money to
pay off recurring bills starting
with the smaller ones so you can
have more money in your house
hold from month to month,"
Raineysaid.
I
To comment on thie story,call
LaRaye Brown at (801) 961-
7280.

By LaRay* Brown
~ h o r m @ ~ ~ . r n r n
Jackson resident Janice Fields is
looking forward to getting her tax
refund, and she doesn't mind wait-
according to the Consumer Federa-
tion of America.
Customerswhooptforelectronic
refunds can get their money in as
soon as one to
"It's cheaper if you wait a couple
of weeks," Lloyd said. BY THE
Allison said if fees for refund-
anticipation loans are calculated as
NUMBERS
an annual percentage rate, some

ing the seven to 10days it takes the
InternalRevenueServiceto process
her return.
"It costs a lot of money to get
those (refund-anticipation) loans,"
said Fields, a longtime customer of
FAST=, a Medgar Evers B o d e d
business that does tax preparation.
In an economy where every dol-
lar counts, consumer advocates are
discouraging people fromutilizing
refund-anticipation loans and to
carefully consider who they have
prepare their taxes.
"The feesthat they pay (for a con-
sumer loan) could be used for a lot
more important stuff to help fami-
lies out," state Banking Commie
sioner John Allison said.
Companies charged people more
than $900 million in fees in 2007,
d
twodays but at would have fees that equate to an
significant cor annualpercentage rate of 500to 600 meeat
versus the to c~ar~on~aaw~' corn percent. I axpayers
14 days the IRS Related: National tax-preparation compa- who received
takes to process Tax tips nies H&R Block and Jackson refund loans in
a return and Hewitt did not return calls seeking 2007'
electronically deposit funds. comment.
Banks that work with tax prepa- "You're giving up a good bit of tQOc
rationcompanieschargefeesforthe your refund to have it in 24 hours auikr
loans. At FASTax, for example, a when you could go to a tax prepara- Amount people
person getting a federal refund pre- tion assistance group and get it for paidin loan
pared pays about $100, owner free in seven to 10 working days," fees in 2007'
Ralph Lloyd said. Getting a refund- Allison said.
anticipation loan can nearly double
the price, depending on the size of
Individuals who earn up t o
$56,000 in adjusted gross income
am
Returnspaid in
therefund. and have Internet access can file for 2008
Lloyd said his employees dis- free using tax-preparation software Sources. Consumer
courage customers from gettingthe at www.irs.gou Federation of Amer-
loans by showing them how those The IRS estimates that is nearly ica and lRS
fees compare to simplyelectronid- 70 percent of allfilers. ' Latest figures
ly filing. See T e ,8B available