QuestionMay 19, 2026

A loan or arrangement for a person to get money from his expected tax refund is usually offered free of charge from the IRS based on a person's tax refund. illegal if the repayment term is more than 20 years. expensive and should be avoided since the IRS refund check arrives soon after the return is filed. sent to a person's credit card company and reduces unpaid balances.

A loan or arrangement for a person to get money from his expected tax refund is usually offered free of charge from the IRS based on a person's tax refund. illegal if the repayment term is more than 20 years. expensive and should be avoided since the IRS refund check arrives soon after the return is filed. sent to a person's credit card company and reduces unpaid balances.
A loan or arrangement for a person to get money from his expected tax refund is usually
offered free of charge from the IRS based on a person's tax refund.
illegal if the repayment term is more than 20 years.
expensive and should be avoided since the IRS refund check arrives soon after the return is filed.
sent to a person's credit card company and reduces unpaid balances.

Solution
4.2(270 votes)

Answer

expensive and should be avoided since the IRS refund check arrives soon after the return is filed. Explanation 1. Identify the financial product The arrangement described is a “refund anticipation loan” (RAL), which is given in anticipation of an IRS refund. 2. Assess the correct statement RALs are typically offered by private companies, not the IRS, and come with fees, making them expensive compared to directly waiting for the IRS refund.

Explanation

1. Identify the financial product <br /> The arrangement described is a “refund anticipation loan” (RAL), which is given in anticipation of an IRS refund. <br />2. Assess the correct statement <br /> RALs are typically offered by private companies, not the IRS, and come with fees, making them expensive compared to directly waiting for the IRS refund.
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