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What Is the Difference Between a Refund Anticipation Loan and a Refund Anticipation Check?

April 26, 2017anticipation difference loan refund

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What Is the Difference Between a Refund Anticipation Loan and a Refund Anticipation Check?

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Overview According to IRS Publication 4832 – Return Preparer Review (12/09), approximately “20.5 million taxpayers purchase ancillary products that provide them quicker access to their expected tax refunds.” Refund Anticipation Loans (RALs) and Refund Anticipation Checks (RACs) are the most prominent products offered. Refund Anticipation Loans (RAL) RALs are short-term loans from a financial institution secured by the taxpayer’s expected refund. The loan is repaid when the IRS refund is sent to an account specified by the lender.