Comment: Guidance Regarding Marketing of Refund Anticipation Loans (RALs) and Certain Other Products in Connection With the Preparation of a Tax Return

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Date: April 7, 2008
Issue:Refund Anticipation Loans
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While we believe that many commercial RALs are abusive financial products that should not be available to consumers without significant protections beyond those currently available, we understand that the IRS does not have jurisdiction over the banks that make these loans. However, the IRS does have the authority to regulate the activity of commercial tax preparers and to sever the close link between the preparer and the loan that facilitates exploitation of taxpayers.