Instead of waiting the usual time, which is approximately two - three weeks, to receive a check in the mail or have it deposited into your bank account, these companies will offer to loan you the amount of money that you're expecting to get back from the IRS, minus the fees that the tax company charges. Depending on how quickly you need cash, and how much money you're willing to pay, you will be given the option of receiving your money in one week, one - three days, or even the very same day that you file your taxes. You will then be advanced the money and when your check comes back from the IRS, the tax preparer keeps it in order to be repaid. It's a win-win situation--or is it?

Many people who have gone into debt paying for Christmas presents that they couldn't afford are desperate for ways of obtaining "fast money." To them, these types of offers from tax preparers are too good to refuse, but are they really worth the extra cost? This often depends on your personal circumstances. Also, the amount of money you're "borrowing" makes a big difference in how much you're charged. The quicker you want to receive your money, the higher the fees will be. Fees for the rapid refund loan alone can sometimes exceed $500 or more, depending on the amount of your refund, so for most people, this is way too much to pay to get money two or three weeks sooner.

If you find yourself desperate for cash and are considering agreeing to pay such high "rapid refund" fees, why not simply file sooner in the year instead. The sooner you file, the sooner the IRS is able to process your return and get your check out to you. There is no reason to pay astronomical fees in order to get your refund back quicker, because the money spent in order to get the money quicker could be used to pay off bills, go on a trip, or for some other useful reason, rather than throwing it away by giving it to H & R Block or a similar tax company.

Many people immediately regret agreeing to pay the ridiculously high fees as soon as everything has been finalized and they actually sit down and read over their tax papers in depth. Don't make a rash decision that you may regret later, but instead, take the time to consider your options. In fact, finding out what fees are associated with obtaining your money quicker in advance is a good idea. If you wait until you're actually at the location having your taxes prepared, you may feel pressured to make an immediate decision, and it may be one that you would not normally make. Unless your financial situation is dire, and you're on the verge of being evicted from your home, having your utilities disconnected, or experiencing some other type of financial crisis, it may not benefit you to pay the extremely high rapid refund fees.

If you're in a financial bind and need cash fast, rapid refund loans aren't usually the best way to obtain the money fast. Only in an absolute emergency should you even consider agreeing to such a loan, because the interest rates and fees are set extremely high, because these companies know that people will pay them because they feel that they have no choice. There are always other options, though, and it would be a lot cheaper for you to borrow the money from a friend or relative, if necessary, than paying the tax preparer the extremely costly charges. If you patiently wait two or three weeks for your refund, then you will be a lot happier to have that extra chunk of cash to use in any way necessary, instead of giving it away to the tax preparation company. Two to three weeks is not that long to wait if it means that you'll have that much more money to spend on bills or whatever else you choose to spend it on.