Rapid Refund was the name of a loan instrument offered by H&R Block tax preparers that delivered, for a fee, the expected amount of the client's net tax refund. According to Forbes, this program amounted to a short-term payday loan with interest rates of up to 185 percent.Know More
In 2001, the New York Times reported that H&R Block had been ordered to cease using the term "Rapid Refund" by federal court judge Raymond Jackson. The term was ruled to be deceptive because it concealed the true nature of the loan that was being marketed. Judge Jackson described annualized interest rates of up to 500 percent and the lack of disclosure as reasons for brokering the consent decree to cease advertising the program as anything other than a short-term loan.
A modified version of the program continued under the name "refund anticipation loan" for another decade after the court's ruling. As reported by Forbes, however, H&R Block suspended its loan program for the 2012 filing season. One reason cited by Forbes was the greatly reduced turnaround time taxpayers experienced in receiving their refunds. By 2012, the IRS anticipated that what had been an eight-week delay had shrunk to only two weeks, making the high-interest loans less desirable for customers.Learn more in Income Tax
According to the IRS, more than 90 percent of refunds are issued in less than 21 days. This applies to e-filing a complete and accurate tax return. For complete and accurate paper tax returns, refunds are typically issued between six to eight weeks from the date received.Full Answer >
The refund status for taxes can be found on the Internal Revenue Service's website. Find and use the Where's My Refund? tool on the website.Full Answer >
Once tax return documentation is accepted, individuals can receive their federal refund by direct deposit or a paper check sent by mail. The government also provides the option of applying the refund towards a U.S. Series I savings bond.Full Answer >
Wait 24 hours after the IRS has received an electronic e-filed tax return or four weeks after filing a paper return to check the status of the refund on that return. The IRS offers a tracking tool on its website as well as a mobile app for checking refund status.Full Answer >