Did you know that providing your clients with a bank product option could allow them to get their refund faster and expand your business? Tax refund related bank products are financial products that facilitate fee payment for your clients who are expecting a federal tax refund. Bank products allow your customer to pay for your services out of their anticipated refunds instead of paying out-of-pocket. The bank you choose deducts your tax preparation fees from your clients’ refund and deposits those fees into your bank account.
The client will receive his or her refund in the form of an electronic refund check, electronic refund deposits, or through a prepaid debit card. These are options that allow your clients to receive their refund faster than traditional methods.
Not only do bank products help your clients, but this option allows you to grow your client base. By providing a bank product option, you can open your business to customers who may not be able to pay tax preparation fees upfront. Moreover, this is a no hassle way to ensure that your preparation fees are paid.
How Do My Clients Receive Their Refund?
· Electronic Refund Checks
Depending on the IRS, normally around 7-14 business days after the return is accepted, the IRS will direct deposit the tax payers refund into the bank. The bank will then deduct any fees for tax preparation and will deposit them into your bank account. The refund check, minus your preparation fees, will then be printed in your tax office for your clients to come and pick up.
· Electronic Refund Deposits
If your client chooses to use electronic refund deposits, the client’s federal tax refund, minus the tax preparation fees, will be deposited into your client’s bank account. Similar to the electronic refund checks, your tax preparation fees are automatically deducted and deposited into your bank account.
· Prepaid Debit Cards
The prepaid debit card functions similar to a standard ATM/Debit card. Once you have completed your client’s tax return, you can provide them with their personal debit card when they leave your office. Once their refund is processed, your tax preparation fees will be deducted and deposited into your account, the remaining balance will then be loaded onto the client’s debit card you provided them with, for immediate use.
How Can Bank Products Benefit Me?
1. No More Lost Preparation Fees
Spend your time making money, not chasing it. Your customer’s fees will be deducted directly from their refund.
2. Secure Delivery Of Your Client’s Refund.
Checks are printed right in your office the day the IRS releases them.
3. Increase Your Profits and Marketing Ability
By offering bank products you give yourself additional avenues for increasing revenue for your business. You can offer the same refund options as the major tax companies, allowing you to be more competitive in your local market.