Instant Tax Refunds

County of Los Angeles
Department of Consumer Affairs
New Consumer Laws 2006

Instant Tax Refunds:

Up-front advances are loans, not “advance” payments (Business and Professions Code 22253.1)

This law says that the up-front money consumers get from people who prepare their income tax returns is a loan, not an instant “advance.”

This law requires tax preparers who offer instant tax refunds to tell customers that the “advance” is a loan. They are required to explain all the terms and conditions of the loan to the customer, including what would happen if the IRS refunds an amount different than what the customer thought he was getting.

Action: DCA’s Consumer Services Unit takes complaints against tax preparers that don’t follow the law.

May be reprinted for non-commercial use if a credit line is included acknowledging the County of Los Angeles Department of Consumer Affairs.

For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
web site: dca.lacounty.gov