By providing the debt
indicator to third parties who file returns electronically,
the IRS encourages refund anticipation loans (RALs)
and makes it appear the IRS endorses RALs. Providing
the indicator also raises major privacy issues.
Proposal:
TAP recommended that
the IRS stop providing the debt indicator to third-party
Electronic Return Originators who arrange RALs
for their taxpayer clients.
Graphic Version