to buy another RAL from Bank B, Bank B is authorized to collect the outstanding debt from the RAL proceeds, transmit the funds to Bank A". It is somewhat unclear how broad is the type of debt for which banks cross-collect. This practice is often not adequately disclosed to the tax preparation client. As a lawsuit filing against H&R Block by the California Attorney General in February 2006 stated, "H&R Block does not adequately tell such customers about any alleged debts, or that when they sign the new RAL application, they agree to automatic debt collection—including collection on alleged RAL-related debts from other tax preparers or banks. These applications are denied, and the customer's anticipated refund is used to pay off the debt, plus a fee". Tax prep firms often vaguely refer to this practice merely as "previous debt". This risk exists even if the client is only using the RAC account for purposes of taking the tax preparation fees out of the refund. Jan. 2011: IRS will not be providing "debt indicator" On August 5, 2010, the IRS announced that for the upcoming 2011 tax filing season, the agency would no longer be providing preparers and associated financial institutions with the "debt indicator" (a one-letter code that discloses whether or not the taxpayer owes back taxes and whether or not the taxpayer owes federally collected obligations such as child support, student loans, etc.). Taxpayers themselves will continue to have access to information about their refund through the "Where's My Refund?" feature at the irs.gov website. In the same news release, the IRS stated it was exploring ways to allow filers to directly split off part of the refund to pay for professional tax preparation, possibly starting in January 2012. The IRS is asking for input from filers, consumer advocates, and those in the tax preparation community regarding whether this would be cost-effective. Jan. 2013: Major U.S. banks stop offering RALs Beginning with the 2013 tax season, major U.S. banks will no longer be offering RALs. They will instead be offering the similar financial products of RACs, which are not loans but are rather temporary accounts which sit empty waiting for the client's IRS refund. See also Payday loan, another type of low-principal, high-interest short-term loan Alternative financial services References Articles "Tax Refund Loans Are Revamped and Resurrected". The New York Times, Jan. 15, 2017 "Why Refund Anticipation Loans Are