Navigating tax preparation can be overwhelming. This is especially true when you want to improve your services as an independent tax preparer. But here’s a straightforward solution that can help: Taxpayer Advance Loans. This type of loan helps your clients and adds an additional valuable service to your business.
A Taxpayer Advance Loan, also called a tax refund advance loan, is a loan product available to the taxpayer through your tax office as part of tax preparation. As an EPS partner, you’ll get quick and easy access to this solution!
The big benefit is your approved client doesn’t have to wait for their tax refund to get access to funds they need. Through EPS Financial, it’s easy to integrate this service into your offerings, increasing customer satisfaction and opening new business opportunities.
For many clients, the tax refund is the single largest financial transaction of the year, and many of your clients depend on this to cover their bills. With the Taxpayer Advance Loan, you can provide an option for your taxpayer to get access to funds fast. It is easy to go through the loan application as part of your normal tax preparation and refund transfer process.
There is no impact to your client’s credit score if they apply. And they can choose if they want to apply for a no cost loan in the amounts of $250, $500, or $1,000 (0% APR), OR, apply for up to $7,000 with a 36% APR.
Taxpayer Advance Loans are simple and efficient. While you are completing their federal or state tax return, they have the option to apply for the loan. The application process is quick, with flexible disbursement options, including the FasterMoney® Visa® Prepaid Card², direct deposit, or check.
The industry standard is there is a cost per approved loan to the tax office when offering this sort of product. If you use our e-Advance program, there is NO marketing fee to you for for in-season advances once the IRS is open for e-File, setting you up with a competitive advantage.
Taxpayer Advance Loans open January 2nd (Pre-Acknowledgement3, prior to the IRS opening) and are available through mid-March. This timing works perfectly for clients who need immediate funds.
Client eligibility and requirements
These loans are particularly beneficial for taxpayers needing immediate access to funds. It’s important to make sure your clients understand the terms of what they are applying for. This includes the 36% APR and any extra costs for larger loans.
Whether they choose to apply for a no-cost loan up to $1,000, or a larger loan amount with 36% APR, transparency is key. This not only builds trust but also creates a reputation for honesty and clarity. These traits are very important in tax preparation.
Launching Taxpayer Advance Loans as part of your business offerings can significantly enhance your marketing strategy. By leveraging marketing support resources, such as those provided by EPS, you can effectively promote this new service.
We have banners, posters, and large-format banners available for order. They have clear and engaging messages. These will help you show your clients the benefits and ease of access. Highlight the no-cost options for smaller loans and the flexible disbursement methods.
1.”Is this a payday loan?”
Concern: Clients might confuse Taxpayer Advance Loans with predatory payday loans.
Response you can offer:
This is not a payday loan. Taxpayer Advance Loans are bank-issued advance loans based on the IRS-approved refund, not the taxpayers’ paycheck. Unlike payday loans:
2. “Will this affect my credit score?”
Concern: Fear of negative impact on credit.
Response you can offer:
Absolutely not. Applying for an advance loan through this program does not affect your credit score. Approval is based on your expected tax refund amount.
3. “Is this going to be very expensive?”
Concern: Clients may be concerned about the cost and what the interest will be.
Response you can offer:
For clients that are concerned about cost, remind them that they can apply for, smaller loan amounts ($250, $500, $1,000) which have 0% APR. For advances from $1,250 up to $7,000, the interest is 36% APR. We offer a helpful Advance Calculator to help your client understand the potential fees. For example, $2,500 loan representing 50% of expected refund borrowed over 33 day term, total amount payable in a single payment is $2,581.37 including interest.
If you want to learn more about Taxpayer Advance Loans, please visit our Taxpayer Advance Loan page.
We also host EPS Academy, our monthly webinar. We recommend registering and attending it as early as September. Our account team will announce our bank product enhancement, discuss tax office growth strategies, and more. You will hear from our President on the state of the industry and best practices for the upcoming tax season.
Plus, you will have the opportunity to ask questions and interact with our account experts.
1. The Refund Advance is an optional tax-refund related loan provided by Pathward®, N.A., Member FDIC (it is not the actual tax refund) at participating locations. Program availability and loan amounts may vary based on state and software provider. The amount of the loan and applicable interest will be deducted from tax refunds and reduce the amount that is paid directly to the taxpayer. Fees for other optional products or product features may apply. Tax returns may be filed electronically without applying for this loan. Loans offered in amounts of $250 (where available), $500, $1,000, 25%, 50%, or 75% of your expected tax refund up to $7,000, with interest based applicants receiving an average of $2,028.06; $7,000 available only to well qualified applicants with a minimum expected tax refund of $9,569. Underwriting standards subject to change. When calculating the amount of your loan, the amount of your “expected” tax refund may be affected by any refundable tax credits and fees. Loans in the amounts of $250, $500, and $1,000 have an Annual Percentage Rate (APR) of 0.00%. Loans in the amounts of 25%, 50% or 75% of your expected tax refund have an APR of 36.0% with a minimum loan of $1,250. For example, $2,500 loan representing 50% of expected refund borrowed over 33 day term, total amount payable in a single payment is $2,581.37 including interest. Availability is subject to satisfaction of identity verification, eligibility criteria, and underwriting standards.
**DETAILS AND LOAN AMOUNTS SHOWN REFLECT 2025 PROGRAM LEVELS. 2026 PROGRAM DETAILS ARE COMING THIS FALL.**
2. The FasterMoney® Visa® Prepaid Card is issued by Pathward®, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc.
3. Pre-Acknowledgement Loans (approved prior to IRS Acknowledgement) have a $75 Marketing Fee.
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Everything You Need to Know About Taxpayer Advance Loans Navigating tax preparation can be overwhelming. This is especially true when you want to improve your services as an independent tax preparer. But here’s a straightforward solution that can help: Taxpayer Advance Loans. This type of loan helps your clients and adds an additional valuable service […]
