How Does a Rapid Refund Work?

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How Does a Rapid Refund Work?
How Does a Rapid Refund Work? (Image: http://www.sxc.hu/photo/854019)

The Rapid Refund Taxpayer

Rapid refund is the process the IRS uses to quickly pay tax refunds to tax filers using the easy form. There is no longer any charge for this service, and payment is usually made within two weeks. The rules around rapid refund have been jumbled, changing each year until recently. It is no longer necessary to use a tax professional. Rapid refund can be disbursed with programs that do taxes on home computers. Rapid refund is eligible for investors filing tax returns with or without deductions or declaring additional income. Most individuals should be eligible for rapid refund as long as they do not file Subchapter S or additional partnership forms.

The Rapid Refund Process

File and complete your tax return using a tax preparer or purchased tax program. Tax professionals usually charge an additional fee for the few minutes it takes to apply for the refund amount. Note that it is now illegal for firms to offer to "loan" you the monies that you are entitled to and will receive within a few days. In addition, it is possible that your account may be reviewed by the IRS. Payments can be delayed pending additional information. Complete your tax filings, sign (electronically) the return and complete the rapid refund request. Refunds by the Internal Revenue Service are usually processed on Fridays, so no more than nine business days or about two weeks are needed to receive your payment.

Rapid Refund Caveats

While the method for filing rapid refund proceeds is now established, there still may be technical changes to the process that will require an additional form or a delay in the receipt of payment. Do not pay a percentage of your refund for a tax professional to file for rapid refund. The process for easy file and rapid refund is no different from a paper filing. Instead, use off-the-shelf software and file the entire return yourself. Do not take loans against the refund. The monies will arrive is less than two weeks and even a modest processing fee makes loans an expensive proposition. Immediately upon filing the IRS will give a conditional approval to your return, thus letting you know to expect the money soon. However, it is still possible that your return may be pulled for audit or in connection with a past problem.

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