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Article: Jackson Hewitt works around RAL crackdown. (Jackson Hewitt Tax Service's refund anticipation loan program) (electronic filing of tax forms)(The 1995 Tax Season)
- Article from:
- Accounting Today
- Article date:
- January 16, 1995
- Author:
CopyrightCOPYRIGHT 1995 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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VIRGINIA BEACH, VA. -- Jackson Hewitt Tax Service's 1995 refund anticipation loan business is poised to be a paradox: painful, yet potentially prolific.
The U.S. Treasury Department's elimination of the direct deposit indicator, an Internal Revenue Service procedure that notified electronic filers of expected refunds, turned the company's RAL business on its head late last year. Banks use the DDI as a signal that the loans will be made safely.
The good news: Jackson Hewitt found three new banks -- Chemical Bank, Bank One and Beneficial National Bank -- to back its RAL program. The bad news: The loan requirements have become stricter.
The tougher ...