Better Business Bureau Serving Central Virginia
News Release
CONTACT
:
Tom Gallagher, President & CEO, 804-648-0030 or
Paul Miller, 804-784-5660
RICHMOND, Va. – The Better Business Bureau (BBB) today warned consumers not to count on an early refund from the Internal Revenue Service (IRS) to pay for holiday gift-giving. This followed yesterday’s IRS announcement that more than 3 million Americans will have to wait until February to receive tax refunds because of a late change by Congress in the alternative minimum tax.
Tom Gallagher, president and CEO of the BBB serving Central Virginia, said some people pay holiday bills with so called pay-day loans at high interest rates in anticipation of a quick refund from the IRS.
“We don’t want consumers be trapped in one of these expensive loans waiting for a tax refund that could be weeks late,” Gallagher said. “The Grinch that stole Christmas could be lurking behind one of those loans.”
Gallagher said the majority of taxpayers are expected to get a refund in a timely fashion. The delay would affect only those filing the following forms: Form 8863, educational credits; Form 5695, residential energy credits; Form 1040A, Schedule 2, child and dependent care expenses; Form 8396, mortgage interest credit; and Form 8859, District of Columbia first-time homebuyer credit.
The affected forms will not be processed by the IRS before Feb. 11.
There may be alternatives to using some of the affected forms. To fully understand all of the options, taxpayers should consult with a reputable tax preparer. In some cases, they may want to seek a second opinion.
The BBB maintains reports on the quality of tax preparation firms throughout the nation. To access those reports, visit www.bbb.org/
The BBB in Central Virginia serves Richmond and Tri-Cities, as well as 42 surrounding counties, from Fauquier to Mecklenburg and Northumberland to Amherst. The nonprofit organization was established in 1954 to advance responsible, honest and ethical business practices and to promote customer confidence through self-regulation of business. Core services of the BBB include business reliability reports, dispute resolution, truth-in advertising, consumer and business education and charity review.
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