Republic Bank expects that during the upcoming tax season it will reduce the amount of money available for refund anticipation loans by 50 percent or more while the maximum amount of individual RALs will fall to $1,500. It also said it is shifting much of its RAL funding to the  troubled Jackson Hewitt Tax Service. Republic filed a statement about its program with the SEC the same day that Jackson Hewitt filed documents in which it said it would offer RALs about 4,200 locations.

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Lenders let Jackson Hewitt Tax Service off the hook from a requirement that the tax preparation company have coverage for all expected refund loan demand for the upcoming tax season. And Jackson Hewitt now believes it can meet 90 percent of the expected demand Refund Anticipation Loans at roughly 4,200 locations. However, the banks tightened their oversight of the chain's operations, imposing spending limits and controls over the company's bonus programs, along with requiring more frequent and wide-ranging reports about its financial status.

 

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Tax services chain Jackson Hewitt has introduced MyTaxManager that offers many of the features professional tax publishers have been bringing to paid preparers, although key features aren't yet operational. That includes the ability to scan and upload tax documents and status tracking for returns. And although the company didn't use the term, it is also offering what is essentially a tax organizer that enables taxpayers to submit basic information prior to conferences with their preparers.

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