Refund Anticipation Check

A Refund Anticiaption Check (RAC) is another way to file your tax return electronically. It has advantages and disadvantages to the RAL. Another form of the RAC is the Refund Processing Transfer also known as the RPT.

The main advantage is that the fees for a RAC are as a general rule substantially less than a RAL. Another advantage is that the fees for preparing your return can be deducted directly out of your refund check. This is the main appeal to many people. If you opt for the RPT the fees are usually a little less and the funds are deposited into your bank account.

The main disadvatage of the RAC is that funds are not available untill the IRS deposits the funds. This usually takes 8-14 days. So for many that is still much better than the 4-6 weeks a paper copy can take.

The information contained on this site should in no way be considered to be professional advice in the form of either tax, accounting, or legal service or consultation. You should always consult with a professional familiar with your individual circumstances before making any specific decisions related to accounting, tax, or legal matters.