Refund Anticipation Loan Test

An associate passed along a test that he uses when he trains volunteers at Voluntary Income Tax Assistance sites: 

A refund anticipation loan is equivalent to:

• a) Getting Your Money Now!
• b) Paying a lot To Get Your Money Now!
• c) Costing low income North Carolinians $63 million a year!
• d) All of the above.

The Debt Indicator is

• a) Provided by the IRS to indicate a debt obligation to Uncle Sam
• b) What banks use to underwrite RALs.
• c) What the IRS will not provide in 2011.
• d) All of the above.

The North Carolina Refund Anticipation Loan Act

• a) Requires tax preparers who originate RALS to register with the NC Commissioner of Banks
• b) Requires tax preparers to prominently display the cost of RALS
• c) Ignored by more than 1 in 4 tax prepares providing RALS
• d) All of the above.