As tax preparers, we usually receive a notification when e-filing a person's return, whether the person will have any part of his or her refund reduced for delinquent taxes 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 (RALs). Starting with next year's tax filing season, the IRS will not provide tax preparers and associated financial institutions with the debt indicator. "We no longer see a need for the debt indicator in a world where we can process a tax return and deliver a refund in 10 days," said IRS Commissioner Doug Shulman. "We encourage taxpayers to use e-file with direct deposit so they can get their refunds in just a few days."

If you have any questions about E-filing your tax return for the 2010 tax season please do not hesitate to call our office at 253-833-5304.

Experienced employees of FB&C write the contents of the materials posted on the blogs.  Carefully consider all facts and circumstances specific to your situation before applying information in our blogs and consult your FB&C advisor before acting on any information provided. The information is provided as general guidance and is not intended to constitute accounting, tax, legal or other professional advice.