Electronic income tax refund early payment system

• US 4,890,228 A
• Filed: 01/21/1988
• Issued: 12/26/1989
• Est. Priority Date: 01/21/1988
• Status: Expired due to Term

• Current Assignee: Beneficial Franchise Company Inc.
• Original Assignee: Beneficial Management Corporation of America (HSBC Holdings plc)
• Inventors: Longfield, Ross N.
• Primary Examiner(s): Smith, Jerry
• Assistant Examiner(s): Hayes, Gail O.
• Application Number:
  US07/146,324
• Time in Patent Office: 705 Days
• Field of Search: 364/408, 364/900, 235/379
• US Class Current: 705/31
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

Electronic data processing system for preparation of electronically filed tax returns and authorization and payment of refunds based on the data supplied in those returns. Electronic data processing programs are provided for creating an electronic tax return that is filed with a tax collecting authority. At the same time as the electronic tax return is created a loan application is processed to create an electronic deposit/loan account for the tax filer at an authorized credit institution. As early as the day after completion of the tax return and loan application, the tax filer receives initial refund payment from the loan account. The authorized credit institution electronically files the electronic tax return with the tax collecting authority which processes the return and transfers by electronic fund transfer the refund amount to the deposit/loan account at the authorized credit institution. Any refund in excess of the initial refund payment is then forwarded to the tax filer. Provision is also made for checking the credit worthiness of the tax filer.

Claims

1. An electronic data processing system for preparing income tax returns and authorizing refund loans comprising:

(a) at least one programmable electronic data processing means for executing programmed arithmetic and logical processes and storing data;

(b) at least one input means for inputting tax preparer data, tax return data and loan application data to said at least one data processing means;

(c) program means executable by said at least one data processing means for processing said tax preparer data and said tax return data and creating electronic tax return data files;

(d) program means executable by said at least one data processing means for processing loan application data and creating deposit/loan account files at an authorized financial institution;

(e) program means executable by said at least one data processing means for processing said tax return data files and said deposit/loan account files and for transmitting electronic tax return data to at least one electronic data processing means contolled by at least one tax collecting authority and for authorizing receipt by said credit institution of electronic funds transfer data from at least one electronic data processing means controlled by at least one tax collecting authority; and

(f) program means executable by said at least one data processing means for processing said tax return data files and said deposit/loan account files and authorizing payment by said financial institution of a tax refund loan amount from said deposit/loan account whereby said payment may be made prior to tax return processing and refund payment by said tax collecting authority.

2. The electronic data processing system of claim 1 wherein said input means includes keyboard input means, visual monitor means, data storage means, data transmission means and programmable data processing means for executing said program means for processing said tax preparer data and said tax return data and transmitting said electronic tax return data files and said loan application data to a remote processing center.

3. The electronic data processing system of claim 2 wherein said remote processing center includes at least one programmable data processing means for executing said program means for processing loan application data and creating deposit/loan account files, for transmitting electronic tax return data to and for authorizing receipt of by said authorized financial institution electronic funds transfer data from, at least one electronic data processing means controlled by at least one tax collecting authority and for executing said program means for processing said tax return data files and said deposit/loan account files and program means for transmitting said files to said authorized financial institution for authorizing payment of a tax refund loan amount from said deposit/loan account whereby said payment may be made prior to tax return processing and refund payment by said tax collecting authority.

4. The electronic data processing system of claim 1 further including means for verifying credit on the basis of said loan application data and said tax return data.

5. The electronic data processing system of claim 1 further including program means for deducting processing fees from said refund loan amount and program means for transmitting at least a part of said fees by electronic funds transfer.

6. The electronic data processing system of claim 1 wherein said refund loan is in the form of a check, issued by the authorized financial institution, which bears the terms of the loan that are accepted upon endorsement.

7. A method of operating at least one programmable electronic data processing machine comprising the programmed steps of:

(a) receiving inputted tax preparer data, tax return data and loan application data;

(b) creating electronic tax return data files from said tax return data;

(c) creating deposit/loan account files related to said tax return data and said loan application data at an authorized financial institution;

(d) transmitting said electronic tax return data files to at least one tax collecting authority;

(e) processing said tax return data files and said deposit/loan account files and authorizing payment by said authorized financial institution from said deposit/loan account files of a tax refund loan amount based on said tax return data prior to completion of tax return processing and refund payment by said tax collecting authority; and

(f) authorizing receipt by said authorized financial institution of tax refund electronic fund transfers, based on said tax return data, from said tax collecting authority.

8. The method of claim 7 further comprising the steps of deducting processing fees from said loan amount and transmitting at least a part of said fees by electronic funds transfer.