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.
