http://www.local12.com/content/troubleshooter/default.aspx Reports protecting consumers from bad business practices or faulty products. en-us Copyright 2012 Newport Television LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Thu, 09 Feb 2012 01:00:01 -0500 Thu, 09 Feb 2012 14:04:21 -0500 Consumer protection http://www.local12.com/sites/WKRC/images/Local12_DOT_COM150.jpg http://www.local12.com/content/troubleshooter/default.aspx 115 150 15 http://www.local12.com:80/content/troubleshooter/story/Instant-Tax-Return-Disappointment/xkEs39MIskG1dkZE0nQ9zg.cspx?rss=939 http://www.local12.com/s/xkEs39MIskG1dkZE0nQ9zg.cspx Many who count on quick cash from those refund anticipation loans are quite upset. People like Sherry Brinson, of Lebanon, who filed her tax return January 18th, along with her loan application. “We depend on this money around this time every year because it gets us out of the hole with our rent, our utilities, anything basically.”

She and her husband had gone to the Instant Tax Service because it advertised they could get a refund anticipation loan within one to two days of filing. She paid extra and applied but, “they said we did not qualify and in the paperwork it said if you're gong to get a refund of $3,000 and how many dependents, this is what was also told to me on the phone, that's how it's determined if you're going to get the anticipation loan and we qualified but didn't get it.”

In fact, Local 12 News has learned most people who apply for this loan, with a company called Tax Tree, don't get the loan despite the ads. “I'm paying $592 for instant tax and tax tree to have our taxes done. I could have had them done for either a lesser price or for free to get my taxes back.”

On top of everything else Brinson says her state tax refund has been sent out. The money was sent to the instant tax service but she says she hasn't been able to get the money from them. “That's what makes me the maddest because that $491 could have helped us tremendously.”

Howard called Instant Tax Service in Middletown and was told it is Tax Tree's policy not to release state tax refunds until the federal refund is received. However, because the Brinsons could not get a refund anticipation loan, the company will drop the charge to just the cost of the tax return $221.

The manager there tells me that office has one of the best approval rates for refund anticipation loans, yet only 30% to 40% get approved. So, think twice before paying to try to get one of those loans.

Meanwhile, the IRS says those who filed their taxes before January 25th can expect a refund delay of up to a week or two. The IRS is increasing fraud protection to stop thieves from claiming money before the real taxpayers get it. ]]> Hey Howard-2007 Mon, 06 Feb 2012 12:17:09 -0500 Instant Tax Return Disappointment