It was reported that, millions of American are facing tax implication related to their health insurance status for the times under the new Health Care act.
It was also reported that, even seasoned tax preparer are finding the new form confusing. According to the Federal Data, regulators are concerned that, consumers are not fully informed about fees either. According to a recent report Americans anxious about their tax refunds are increasingly turning to payment advances. In order to get their taxes prepared, they are also gradually turning to prepaid cards and other costly services.
According to Consumer Financial Protection Bureau, some consumers are complaining about refund anticipation checks centered on advertising, quality of service and fees. The bureau said, they are also preparing the first rules on prepaid debit cards including those for tax return. It was reported that, the cards for tax return would require an upfront disclosure about costs and risks which will be “easy to understand.”
According to a recent IRS data, in 2014 refund anticipation checks rose to 21.6 million. Which is 7 percent higher than the 2011. The data also revealed that, about half the purchasers are EITC recipients. The data also confirmed that, among the recipients 84 percent are from low income families. Industry analysts also suggested that, the payment advances and their fees will become more extensive as the tax preparer are looking to boost their revenue.
According to the earning reports, industry giants like H&R Block`s 10 percent revenue comes from refund anticipation checks and prepaid cards. Another industry giant, Liberty Tax Service`s 20 percent revenue also comes from refund anticipation checks and prepaid cards. Both companies said they are committed to provide consumers with the information which will help them to make tax filing decision.
According to the National Society of Accountants, average tax preparation fees in 2104 return is $273, which is up 11 percent from the previous year. But National Consumer Law Center said, it’s near to $400. It was previously reported that, President Obama asked the Congress to give IRS and the Treasury Department clear regulatory authority and to increase penalties for certain tax filing errors due to deliberate or reckless conducts. Industry experts are suggesting that, prospect of such legislation remains uncertain.
2 Comments
this article has nothing to do with healthcare implications, this has to do with refund anticipation checks. Good Job editorial staff.
I agree. Article has nothing to do with healthcare tax penalties. Surprise, surprise. It is Google.