Arizona's Attorney General Terry Goddard is warning Arizonans about the cost of those "refund anticipation" loans.  These loans are available to people who do not want to wait for their tax refund check.  But the loans can be costly with high fees for processing and interest.

A 2006 report by the consumer Federation of America and the National Consumer Law Center found that these loans cost $100 on average in interest.  That cost is on top of the average cost of tax preparation fees which is around $246. Goddard's office recommends tax payers utilize the electronic filing option for submitting your taxes, which takes about 10 days to process.  The office also has a number of tips for consumers to help them recieve their tax refunds a bit faster without the high costs of the tax refund loans.

Goddard offered the following tips for obtaining tax refunds quickly and with little or no fees:

*  Open a bank account – if you don’t currently have one – and take advantage of direct deposit for both your tax refund and your pay check. Many banks reduce or eliminate checking account fees when you have your pay check deposited directly to your checking
account.

* File your tax return electronically (E-file) with the refund deposited directly into your bank account. You should receive your refund in a week to 10 days.

* If you elect to receive your tax refund through direct deposit, the IRS will automatically deposit the 2008 tax rebate into the same account. If you choose to receive a paper check, the IRS will automatically send the check to the same address.

* If you receive a paper check refund, avoid check-cashing offices, which charge fees. Cash your check at a bank instead.

Source:  Terry Goddard Cites High Cost of Tax Refund Loans