Tax Preparer Advertised $750 Refund Advance But Only Gave $200 - Can I Go to Another Preparer?

You need to ACT FAST on this. Once your return has been e-filed and accepted by the IRS, you CANNOT file again with another tax preparer. The system will automatically reject any subsequent filing with your SSN as a duplicate return, which could significantly delay your actual refund and potentially trigger an IRS review. If your return has already been ACCEPTED by the IRS (not just submitted), your options are limited to: 1. Wait for your full refund through Liberty Tax 2. File a formal complaint with Liberty Tax corporate 3. File a complaint with the Better Business Bureau 4. Contact your state's consumer protection office This is unfortunately a common tactic with some tax preparation chains during peak season.

Did you sign any paperwork regarding the advance loan amount? I worked at a tax preparation office (not Liberty) a few years back, and these advance loans typically have very specific terms in the fine print. Often they advertise "up to" a certain amount, but the actual loan is based on your expected refund amount, filing status, and other factors. I'd recommend checking all the paperwork you received. There should be a separate loan agreement document that outlines the actual terms. If they clearly misrepresented what you would receive, that's potentially actionable.

I actually did sign some paperwork, but she rushed me through it so fast I didn't catch all the details. Looking back at my copy now, there's some fine print about "advance amounts may vary based on qualification factors" but she DEFINITELY told me verbally I would get $750. That's the whole reason I paid their $300 preparation fee instead of using FreeTaxUSA like I did last year. So now I'm out the prep fee AND didn't get the advance I was counting on. Such a waste of money.

I had a similar issue with a different tax place last year and needed to talk to someone at the IRS to see if I could cancel my return. I tried calling for 3 days straight and couldn't get through. Someone recommended Claimyr.com to me (https://youtu.be/_kiP6q8DX5c) and I got through to an IRS agent in about 25 minutes. They explained that once the return is accepted, you're stuck with it, but if it's just been submitted there might be a small window to cancel. I'm a bit worried about your situation because the advance loan complicates things - you might need to talk directly to an IRS agent to understand your options.

Have you checked your IRS transcript to see if your return has been officially accepted yet? There's a specific code (846) that appears when your refund is approved, and other codes like 570/971 that indicate different processing stages. If you don't see any codes yet, there's a possibility your return is still in the submission queue and hasn't been fully processed.

I believe I can provide some insight here, as I've seen this situation play out several times. The "Refund Advance" products at most tax preparation chains are technically loans based on your anticipated refund, not actual advances of your refund itself. In my experience, what likely happened is that Liberty Tax's underwriter (usually a bank or financial institution that partners with them) only approved you for $200 based on their risk assessment algorithm, despite what the tax preparer told you. The preparer probably shouldn't have quoted you a specific amount without running your information through their system first. Unfortunately, once your return has been submitted and especially if you've received any portion of an advance, you're generally bound to that preparer for this tax season. For next year, you might want to consider filing earlier in the season with a more transparent preparer or using one of the free filing options if your return is relatively straightforward.