Federal tax return

When it comes to federal tax return, some companies play great tricks with fillers. Some of the federal tax return tricks involve loans in the name of refunds or tax preparation fees.

24-hour refunds on federal tax return

Some tax preparation companies claim they give you your federal tax return refund within 24 hours of submitting your federal tax return. Beware of this practice, the federal tax return refurn that you get is often actually a loan. You can find the catch information in small print in the paperwork.

Know that IRS does not deviate from the standard times it takes to process a return with a refund. In can take up to 8 weeks for a refund from a paper federal tax return to recive. Electronically filed federal tax returns are faster, they may take up to three weeks.

If you check on your federal tax return that you want to have your refund directly deposited into your account, it saves you about a week. Electronically filed federal tax return with direct deposits can even be processed in as little as 10 days.

Funds given to tax payers by some agancies are often called a Refund Anticipation Loan (RAL). The tax agent is loaning the applicant a sum of money. They in turn are reimbursed by directing your refund back to them. However, if your refund is held for examination for any reason, or offset to another debt, then you not only will owe the company the money back. In addition to that you also may owe the IRS.

Federal tax return preparation fees

The federal tax return preparation fees are astounding. Some tax filers charge fees for very simple work. It is not uncommon to charge $50 to $100 federal tax return preparation fees for a one page 1040-EZ. This form takes no more than five minutes to prepare and file.