All about IRS Taxes Loan, How it Works and Payment Process?

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About IRS Tax Loan

A tax refund anticipation loan (RAL) is marketed as way for the taxpayer to receive his or her money even more quickly. Such loans are not provided by the U.S. Treasury or the IRS, but by third-party companies, and they are subject to the interest rates and fees set by the lender.

How does a tax loan work?

When you receive a RAL, you are lent the amount of your tax refund. Often interest and fees are taken out of the loan. When the government sends the refund check, it is deposited into the bank that made the loan. If the refund is smaller than you thought, the full amount of the loan must still be repaid.

Can I get my tax return back the same day?

The IRS website states that “The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year. The same results are expected in 2013.” This means that you will probably receive your federal tax refund within three weeks of e-filing your tax return.

How to Pay IRS Taxes Loan Online?

1. Automatic payment: If you bank online, you can set up a payment to the IRS just like you do with other bills. If you’re filing early, you can set the payment up to be paid any time before the April 15th filing deadline.

2. Check or money order: The IRS still accepts checks and money orders. Checks are preferable because they’re free, and you don’t have to drive anywhere to write a check.

3. Debit card: Paying your taxes can be as easy as swiping your debit card like you do to pay for groceries.

4. Electronic Federal Tax Payment System (EFTPS): It’s free, safe, and convenient. You can pay your taxes online or by phone on the IRS’ own system.

5. Same-day wire: If it’s too late to pay your taxes on time with EFTPS, consider making a same-day wire transfer to the IRS.

6. Credit card: Paying your taxes by credit card is easy.