Economic Impact Payments & Refund Anticipation Loans

What happens if a taxpayer is expecting an Economic Impact Payment (EIP) but has taken a refund anticipation loan (RAL)? In a blog post, the National Taxpayer Advocate addresses this and other issues involving the EIPs being made to Americans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. A RAL is money borrowed by a taxpayer from a lender based on the taxpayer’s anticipated income tax refund. The IRS says if a taxpayer has a RAL, and his or her bank account information isn’t provided, the IRS will issue the EIP by mail. Other matters related to EIPs also are discussed including how to speed up your payment. Read the Advocate’s blog post here: