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New York Markets Open in:

Futures: /quotes/zigman/43106711/delayed S&P 500 -1.2% /quotes/zigman/48241424/delayed DOW -1.2% /quotes/zigman/43108768/delayed NASDAQ -1.4%

need to know
Glencore copper, zinc output falls on cutbacks
Crude price pushes below $27 a barrel
Shell cancels $14.4 billion bridge credit facility
Zurich posts bigger-than-expected loss
Akzo Nobel in talks to buy BASF coatings unit
Chinese group bids $1.2 bln for Opera Software
Walgreens may end partnership with Theranos
U.S. government runs $55 billion budget surplus

Twitter proves Wall Street critics were right
Twitter adds new timeline feature

Bass issues warning on China’s foreign cash reserves
What’s holding back the world economy?
China's FX reserves drop $99.47 bln


Hong Kong stocks fizzle as market reopens

North Korea reportedly executes top general

Yellen: Fed isn’t sure negative rates are legal
Yellen doesn’t expect to reverse Fed rate hike
Yellen gets into heated exchange at hearing
Bond market, Yellen face off on negative rates

Burger King to start selling hot dogs

Wendy's profit, revenue top estimates
McDonald’s breakfast boost may not last


BP CEO calls for cuts to carbon emissions
Supreme Court blocks Obama’s carbon cuts

Will falling oil prices bankrupt Saudis, Russians?
Cheap oil may make OPEC dominant again
As oil revenue drops, Gulf states ponder taxes
Will oil get so cheap, it won’t pay to extract it?

Christie, Fiorina drop out of presidential race

A break for zombie-fighting Amazon developers

Expedia doesn’t see Airbnb as a threat

Private-equity firms now buying back their own shares

Has college financial aid totally backfired?

Michael Moore: Imagine life without student debt
6 ways Obama would make college affordable

What Apple, Amazon and Starbucks have in common
Amazon up after new share buyback plan

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

Musician Lenny Kravitz owned the 19th-century Creole cottage in the French Quarter of New Orleans from 1994 to 2012. It's now back on the market at $1.16 million.

RE/Max N.O. Properties/Mansion Global
A bona fide celebrity abode — believe it or not
London house of the week has spiritual side
S.F. real estate looked like this in 2000, too
Location Scouts: Insider intel from top markets

REIT bonus targets at heart of Brixmor scandal

Why is everyone freaking out about ‘CoCos’?

If you’re bullish on oil, Chevron and Exxon are buys here
If you’re bullish on oil, these stocks are buys

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Is it wise to hold on to cash reserves?

/conga/frontpage.html 367664

Markets »

122.29MDow Volume:
Avg Vol: 131.80M
Unchanged
201
Decliners
3048
Advancers
3255
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,915 -100 0.62%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 +15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 0 0.02%
GlobalDow
/quotes/zigman/629063/realtime 2,062 -18 0.88%
Gold
/quotes/zigman/33772884/delayed 1,213 +19 1.57%
Oil
/quotes/zigman/2260836/delayed 26.77 -0.68 2.48%
FTSE 100
/quotes/zigman/3173262/delayed 5,541 -131 2.31%
DAX
/quotes/zigman/2380246/delayed 8,808 -210 2.33%
CAC 40
/quotes/zigman/3173214/delayed 3,951 -110 2.72%
FTSE MIB
/quotes/zigman/1482176/delayed 16,107 -608 3.64%
IBEX 35
/quotes/zigman/2759620/delayed 7,879 -265 3.25%
Stoxx 600
/quotes/zigman/2380150/delayed 306 -9 2.89%
Asia Dow
/quotes/zigman/6959860/realtime 2,439 -15 0.59%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 18,546 -742 3.85%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,248 -511 2.15%
Singapore
/quotes/zigman/1709939/delayed 2,551 -31 1.19%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.44%
Yen
/quotes/zigman/16008150/realtime/sampled 111.57 -1.78 1.57%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 -0.01 0.50%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 -0.01 1.10%
DXY Index
/quotes/zigman/1652083/delayed 95.59 -0.23 0.24%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.70 -0.18 0.21%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.67 0.00 0.00%
German 10y
/quotes/zigman/15866409/realtime 0.17 -0.07 29.31%
Italy 10yr
/quotes/zigman/15866497/realtime 1.68 +0.03 1.84%
Spain 10yr
/quotes/zigman/15866444/realtime 1.73 +0.01 0.42%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.32 -0.09 6.57%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 0.00 0.00%
Crude Oil
/quotes/zigman/2260836/delayed 27 -1 2.48%
Gold
/quotes/zigman/33772884/delayed 1,213 +19 1.57%
Corn
/quotes/zigman/25518691/delayed 360 0 0.00%
DJIA F
/quotes/zigman/48241424/delayed 15,674 -192 1.21%
S&P F
/quotes/zigman/43106711/delayed 1,825 -22 1.16%
Silver
/quotes/zigman/32655632/delayed 15 +0 0.87%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.00 1.46 1.47%
AAPL /quotes/zigman/68270/composite 94.27 -0.72 -0.76%
GOOG /quotes/zigman/59527964/composite 684.12 6.01 0.89%
BAC /quotes/zigman/190927/composite 11.98 -0.22 -1.80%
C /quotes/zigman/5065548/composite 37.41 -0.10 -0.27%
F /quotes/zigman/264304/composite 11.34 -0.01 -0.09%
T /quotes/zigman/398198/composite 36.43 -0.22 -0.60%
BP /quotes/zigman/247026/composite 28.04 -0.31 -1.09%
GE /quotes/zigman/227468/composite 28.30 0.02 0.07%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

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The Tax Blog
The latest news, insights and tips about taxes

Refund Anticipation Loans: Jackson Hewitt Swoops In

This tax season Jackson Hewitt could elbow its way into controlling a controversial market: refund anticipation loans. Federal regulators banned the tax preparer’s larger rival, H&R Block, from issuing RALs by ordering its banking partner to cease backing its loans. That could be a boon for the No. 2 preparer as it stands poised to gobble up a lion’s share of a once-split market.

H&R Block’s lending program screeched to a halt late last month when the Office of the Comptroller of the Currency ordered HSBC Holdings PLC to stop backing the tax preparer’s RALS and refund anticipation checks. “It was a startling turn of events,” says Morgan Stanley executive director Vance Edelson. “If you asked me a year ago whether it’d be H&R Block without the RALs and Jackson Hewitt with them, I would have said you were crazy.”

The OCC won’t comment, though analysts say the entity evaluates the risk these loans pose on the banks and regulates which banks can back them accordingly. HSBC likely wanted out of the business and pressured the OCC to act, says Edelson. That leaves one major player—Republic Bancorp, Inc.—to shoulder the risk and reap the profits of a lucrative yet contentious industry. Republic still backs Jackson Hewitt’s loans.

Refund anticipation loans give filers the option to pay a hefty fee to get their expected tax refund on the spot. In turn, the lender keeps the taxpayer’s refund when it comes back from the IRS. Jackson Hewitt customers can get a maximum of a $1,500 anticipation loan, which could carry an APR of 24% among other charges, according to Kartik Mehta, a research analyst for equity-research firm Northcoast Research. That fee is split between the bank—which gets north of $100—and a fixed $20 to Jackson Hewitt. H&R Block, meanwhile, charged a $96 fixed fee, split 50/50 with its bank. Smaller competitor Liberty Tax Service will also offer anticipation loans (the company got in trouble in 2009 for some of its loan-related marketing practices).

RALs have ruffled consumer advocates who’ve tagged the system as highly predatory, particularly for low-income families without easy access to traditional lending spigots. Data from the  Consumer Federation of America and the National Consumer Law Center indicate that in 2008, RAL fees took in $738 million from the refunds of 8.4 million taxpayers.

The IRS urges taxpayers to steer clear of RALs and says that e-filing a return and selecting direct deposit will get your refund quickly—sometimes within about 8 days. Morgan Stanley’s Edelson says, though, that since some 25% of Americans don’t have a checking account, the speed of direct deposit doesn’t help them. Even if they receive a check relatively quickly, they’d have to pay for check cashing fees on top of that, he says.

Still, the IRS has proposed banning RALs altogether—partly because they are concerned that such loans abet tax fraud. A preparer could be tempted to manipulate a return to result in a refund, even if the taxpayer really doesn’t have one. Why? No refund, no refund anticipation loan—and no extra profits for the preparer or its employer.

Readers, do you think tax preparers should be permitted to offer RALs?  How far should regulators go to limit the products they can offer?

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 164)

View all Comments »
    • crhykhokycsr

    • Thanks for your marvelous posting! I really enjoyed reading it, you’re a great author.I will make sure to bookmark your blog and will eventually come back in the future. I want to encourage you continue your great work, have a nice holiday weekend!| just click the following web page http://sdkfsdklfskdlflsd.com

    • I feel that i worked for it it’s my money if i want to pay 99.9% it’s my money my choice! My husband and i decided we’re gonna continue until good ol’ uncle Sam stops us.

    • que tengo que aser para un prestamo tengo que tener buen credito
      O ser clientes de Jackson Hewitt

    • I think RALs are good our paydays don’t get us 2 the next one idc what people say they are a good thing 2 have and there’s a reason people gets there money in a day people needs 2 pay some bills I like being able 2 get our money the next day

About The Tax Blog

  • The Tax Blog brings together a team of award-winning tax journalists from the Dow Jones network and around the web to examine the tax issues, changes and legislation that affect families, investors and small business owners. Our contributors include Tax Report columnist Laura Saunders (WSJ), Tax Guy columnist Bill Bischoff and senior reporter Jilian Mincer (SmartMoney.com), retirement-focused reporter Anne Tergesen (WSJ), wealth management writer Arden Dale (Dow Jones Newswires), TaxWatch columnist Eva Rosenberg and personal finance reporter Andrea Coombes (MarketWatch), and reporter Alyssa Abkowitz (SmartMoney). They’ll provide the latest news and insight, mine the tax code for tips and loopholes, and answer your questions about tricky tax situations. Contact the The Tax Blog with ideas, suggestions or tax questions at thetaxblog@dowjones.com.

MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

New York Markets Open in:

Futures: /quotes/zigman/43106711/delayed S&P 500 -1.2% /quotes/zigman/48241424/delayed DOW -1.2% /quotes/zigman/43108768/delayed NASDAQ -1.4%

need to know
Glencore copper, zinc output falls on cutbacks
Crude price pushes below $27 a barrel
Shell cancels $14.4 billion bridge credit facility
Zurich posts bigger-than-expected loss
Akzo Nobel in talks to buy BASF coatings unit
Chinese group bids $1.2 bln for Opera Software
Walgreens may end partnership with Theranos
U.S. government runs $55 billion budget surplus

Twitter proves Wall Street critics were right
Twitter adds new timeline feature

Bass issues warning on China’s foreign cash reserves
What’s holding back the world economy?
China's FX reserves drop $99.47 bln


Hong Kong stocks fizzle as market reopens

North Korea reportedly executes top general

Yellen: Fed isn’t sure negative rates are legal
Yellen doesn’t expect to reverse Fed rate hike
Yellen gets into heated exchange at hearing
Bond market, Yellen face off on negative rates

Burger King to start selling hot dogs

Wendy's profit, revenue top estimates
McDonald’s breakfast boost may not last


BP CEO calls for cuts to carbon emissions
Supreme Court blocks Obama’s carbon cuts

Will falling oil prices bankrupt Saudis, Russians?
Cheap oil may make OPEC dominant again
As oil revenue drops, Gulf states ponder taxes
Will oil get so cheap, it won’t pay to extract it?

Christie, Fiorina drop out of presidential race

A break for zombie-fighting Amazon developers

Expedia doesn’t see Airbnb as a threat

Private-equity firms now buying back their own shares

Has college financial aid totally backfired?

Michael Moore: Imagine life without student debt
6 ways Obama would make college affordable

What Apple, Amazon and Starbucks have in common
Amazon up after new share buyback plan

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

Musician Lenny Kravitz owned the 19th-century Creole cottage in the French Quarter of New Orleans from 1994 to 2012. It's now back on the market at $1.16 million.

RE/Max N.O. Properties/Mansion Global
A bona fide celebrity abode — believe it or not
London house of the week has spiritual side
S.F. real estate looked like this in 2000, too
Location Scouts: Insider intel from top markets

REIT bonus targets at heart of Brixmor scandal

Why is everyone freaking out about ‘CoCos’?

If you’re bullish on oil, Chevron and Exxon are buys here
If you’re bullish on oil, these stocks are buys

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Is it wise to hold on to cash reserves?

/conga/frontpage.html 367664

Markets »

122.29MDow Volume:
Avg Vol: 131.80M
Unchanged
201
Decliners
3048
Advancers
3255
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,915 -100 0.62%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 +15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 0 0.02%
GlobalDow
/quotes/zigman/629063/realtime 2,062 -18 0.89%
Gold
/quotes/zigman/33772884/delayed 1,213 +19 1.57%
Oil
/quotes/zigman/2260836/delayed 26.76 -0.69 2.51%
FTSE 100
/quotes/zigman/3173262/delayed 5,541 -131 2.31%
DAX
/quotes/zigman/2380246/delayed 8,808 -210 2.33%
CAC 40
/quotes/zigman/3173214/delayed 3,951 -110 2.72%
FTSE MIB
/quotes/zigman/1482176/delayed 16,105 -609 3.64%
IBEX 35
/quotes/zigman/2759620/delayed 7,879 -265 3.25%
Stoxx 600
/quotes/zigman/2380150/delayed 306 -9 2.89%
Asia Dow
/quotes/zigman/6959860/realtime 2,439 -15 0.59%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 18,546 -742 3.85%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,247 -512 2.15%
Singapore
/quotes/zigman/1709939/delayed 2,551 -31 1.19%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.01 0.45%
Yen
/quotes/zigman/16008150/realtime/sampled 111.57 -1.78 1.57%
Pound
/quotes/zigman/16008140/realtime/sampled 1.44 -0.01 0.52%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 -0.01 1.10%
DXY Index
/quotes/zigman/1652083/delayed 95.59 -0.23 0.24%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.70 -0.18 0.21%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.67 0.00 0.00%
German 10y
/quotes/zigman/15866409/realtime 0.17 -0.07 29.31%
Italy 10yr
/quotes/zigman/15866497/realtime 1.68 +0.03 1.88%
Spain 10yr
/quotes/zigman/15866444/realtime 1.73 +0.01 0.47%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.32 -0.09 6.57%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 0.00 0.00%
Crude Oil
/quotes/zigman/2260836/delayed 27 -1 2.51%
Gold
/quotes/zigman/33772884/delayed 1,213 +19 1.57%
Corn
/quotes/zigman/25518691/delayed 360 0 0.00%
DJIA F
/quotes/zigman/48241424/delayed 15,673 -193 1.22%
S&P F
/quotes/zigman/43106711/delayed 1,825 -22 1.16%
Silver
/quotes/zigman/32655632/delayed 15 +0 0.87%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.00 1.46 1.47%
AAPL /quotes/zigman/68270/composite 94.27 -0.72 -0.76%
GOOG /quotes/zigman/59527964/composite 684.12 6.01 0.89%
BAC /quotes/zigman/190927/composite 11.98 -0.22 -1.80%
C /quotes/zigman/5065548/composite 37.41 -0.10 -0.27%
F /quotes/zigman/264304/composite 11.34 -0.01 -0.09%
T /quotes/zigman/398198/composite 36.43 -0.22 -0.60%
BP /quotes/zigman/247026/composite 28.04 -0.31 -1.09%
GE /quotes/zigman/227468/composite 28.30 0.02 0.07%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/118681/composite TSLA-3.09%
  • /quotes/zigman/20039/composite CSCO-0.62%
  • /quotes/zigman/112431/composite CLDX-7.59%
  • /quotes/zigman/162154/composite NOK-1.02%
  • /quotes/zigman/7619798/composite EXPE+1.85%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
  • Free WSJ.com registration