Beware Tax Filing Scams!

Have you seen the ads for "instant money," "rapid refunds," or "electronic refund advances"? These tax services often take a large part of your tax refund. Don't be fooled by flashy ads! What do these tax service companies really offer? They give you a very expensive loan. The interest rate on the loan can cost you from 173% to more than 200% interest per year!

There are other problems with these loans. What happens if the tax preparer makes a mistake? What happens is the IRS withholds your refund? You still have to repay interest on the loan you got from the tax service company.

You'll get more of your tax money if you wait for the IRS to give you your refund check in the normal time. Usually, it only takes 2 to 4 weeks to get your refund. E-filing is even faster. When will you get your return if you E-file? Usually, you will get your refund in 7 to 10 days. When will you get your return if you file a paper return by mail? It might take 3 or 4 weeks to get your refund.

Why pay a company hundreds of dollars for a "rapid refund"? The "rapid refund" will only get to you a few days earlier. And your refund will be a lot less money. Why not save those hundreds of dollars for yourself and your family?

It's free to file your tax return. So why pay anything at all to file?

You may also be eligible for free help filling out your tax return. Find out if you qualify. VITA (Volunteer Income Tax Assistance) or AARP Tax-Aide site offer free tax help. VITA and AARP Tax-Aide services make fewer mistakes than tax preparation companies.

Find a VITA site near you. Find an AARP Tax-Aide site near you. File your federal Earned Income Credit online at I-CAN! EIC. I-CAN EIC is a project of Legal Aid Society of Orange County, a nonprofit legal services organization in California.