TAP 05-039

Advertising RAL Alternatives

Statement of Issue:

Many taxpayers, especially low-income and taxpayers with limited English proficiency (“LEP taxpayers”), request refund anticipation loans (RALs) because they are unaware of other methods of speeding up their tax refund through the use of early filing, e-filing, and direct deposit.

Proposal:

TAP recommends that the IRS direct its current advertising campaign toward educating taxpayers on how to speed up their tax refunds through the use of early filing, e-filing, and direct deposit. IRS could also inform low-income and LEP taxpayers about these alternatives to RALs through Low Income Taxpayer Clinics (LITCs).

Response Notes: