Refund Anticipation Check (RAC)
Deduct Prep Fees From Your Refund
Deduct tax preparation fees directly from your federal tax refund without paying upfront out-of-pocket costs, with a secure refund transfer to your bank account.
How a Refund Anticipation Check Works
A Refund Anticipation Check (RAC) is a refund transfer product that lets you pay your tax preparation fees directly out of your federal refund. Instead of paying upfront, the IRS deposits your full refund into a temporary bank account established for the transaction. The preparation fee and a modest bank product fee are deducted, and the remaining balance is transferred to your personal bank account.
Because a RAC is a transfer and not a loan, there are no finance charges, making it a more affordable option than a Refund Anticipation Loan. It is ideal for taxpayers who want to avoid out-of-pocket preparation costs but do not need immediate access to funds.
Key Advantages for Your Business
No Upfront Payment
Your preparation fees are collected from your refund, so you never pay out-of-pocket at the time of filing.
Secure Refund Transfer
The IRS deposits your refund into a temporary account; fees are deducted and the balance is sent to your personal bank account.
Lower Cost Than a Loan
A RAC is a refund transfer, not a loan, so there are no finance charges, only a modest bank product fee.
Direct Deposit Convenience
Receive your net refund balance directly in your checking or savings account once the IRS releases the funds.
What You Receive
Frequently Asked Questions
What is the difference between a RAL and a RAC?+
A Refund Anticipation Loan (RAL) advances funds quickly but charges finance fees. A Refund Anticipation Check (RAC) is a refund transfer with no loan, so it costs less but pays out only after the IRS releases your refund.
How long does a RAC take to fund?+
Typically 8 to 15 days after the IRS accepts your e-filed return, depending on IRS processing. The net balance is then deposited into your bank account.
Book This Service with Viktor
Connect directly with Vikram Singh Angurala in Albany, NY or on a secure video call to get your file processed accurately.