The Internal Revenue Service and private tax preparers have agreed that a free electronic filing program will be offered for 2006 tax returns without solicitations for refund loans that sometimes carry high interest charges and fees.
The I.R.S. said Tuesday that the Free File Alliance, a coalition of tax preparation software manufacturers that make their software products available free, would no longer include side offerings like Refund Anticipation Loans in their programs.
I see this as a smart move. The people most likely to be hurt by this system in the past were the lower income earners in our country. While taking away the loans program will mean these people will have to wait longer for their refund, it also means they are less likely to be preyed upon unscrupulous tax shops. Many of these loans had exceedingly high interest rates, putting a hefty penalty on people who traditionally are less financially savvy and therefore less likely to realize they are being taken advantage of. (via The Consumerist)
[tags]IRS does away with loan adverts alongside free e-filing service[/tags]