No Debt Indicator for 2011 Tax Filing Season

The IRS will no longer provide tax preparers and associated financial institutions with the “debt indicator,” which is used to facilitate refund anticipation loans, starting with next year’s tax filing season. Currently, tax preparers who electronically submit a client’s tax return receive in the acknowledgment file an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded student loans. This acknowledgment is known as the debt indicator and is used as an underwriting tool for refund anticipation loans.

Learn more.

This entry was posted on Tuesday, August 17th, 2010 at 1:54 pm and is filed under CalCPA Buzz. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.