Is it OK to borrow money to pay for your tax accountant's fees, hoping that the refund will come quick enough to avoid any issues?
Put it on the credit card and hope the refund comes in time to pay the bill?
Sometimes people in a hard spot simply don't have the funds to pay their accountant.
This is especially frustrating when they're expecting a refund which amounts to much more than the accountant's fees, and they could really use the funds. But they don't have the funds to pay for the service, so they're stuck.
Is it OK To borrow money in this case? How long can it reasonable take to process?
Generally, refunds are issued within a few weeks of e-filing. If the taxpayer has a US bank account, it would be directly deposited if it was a return filed for the prior year. For years earlier than that, it will be issued as a check, which could take a bit longer.
However, in some cases it could take much longer. If the return gets selected for manual review, it could take another 6-12 months. Possibly longer if audited. If selected for ID verification, it could even take up to 36 months! Paper filed returns can take 6-12 months to process, as well.
So while in the vast majority of cases it will come within a month or two, be prepared just in case it's held up! So while it may make sense to borrow, make sure you have a backup plan just in case it's held up.
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