System and method for providing a loan to a taxpayer based on a pre year-end tax refund

• US 7,127,425 B1
• Filed: 01/14/2000
• Issued: 10/24/2006
• Est. Priority Date: 01/14/2000
• Status: Expired due to Term

• Current Assignee: H&R Block Tax Services LLC (H&R Block, Inc.)
• Original Assignee: H&R Block Tax Services LLC (H&R Block, Inc.)
• Inventors: Wilson, Robert D.
• Primary Examiner(s): Colbert, Ella
• Application Number:
  US09/483,666
• Time in Patent Office: 2,475 Days
• Field of Search: 705/31, 705/35, 705/38, 705/30, 705/19, 705/40, 235/380, 708/100, 707/100
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A system and method for providing to a taxpayer a loan in an amount based on the taxpayer'"'"'s estimated tax refund amount due for a current year, the loan being provided to the taxpayer prior to year end of the current tax year and prior to completion and filing of the taxpayer'"'"'s current year tax return forms with a taxing authority. The taxpayer'"'"'s estimated tax refund may be based on historical tax refund data as well as current year income data. A loan granting entity may consider the level of tax refunds that the taxpayer has received in previous years as well as income data for the first three quarters of the year to determine a reasonable estimate of the tax refund amount that the taxpayer will likely receive for the current tax year.

Claims

1. A computerized system for providing a loan to a taxpayer prior to the end of the current tax year, comprising:

historical income tax refund data for said taxpayer, said historical income tax refund data comprising income tax refund amount data for at least one year prior to the current year and in a computer;

year-to-date income data for the current year, for said taxpayer, wherein said date is prior to the end of the current tax year and said year-to-date income data is in said computer;

year-to-date expense data for the current year, for said taxpayer, wherein said date is prior to the end of the current tax year and said year-to-date expense data is in said computer;

a process in said computer to determine prior to the end of the current tax year an estimated income tax refund amount for said taxpayer for said current tax year using said historical income tax refund data, said year-to-date income data for a date prior to the end of the current tax year, and said year-to-date expense data for a date prior to the end of the current tax year;

a loan provided to said taxpayer prior to the end of said current tax year in an amount based on said estimated income tax refund amount for said current tax year for said taxpayer as determined by said computer; and

an income tax refund for said current tax year, wherein said income tax refund is based on a tax return prepared using actual income and expense data and filed after said current tax year for said taxpayer and is applied to the balance of said loan based on said estimated income tax refund.

2. The system of claim 1 wherein said historical income tax refund data is determined in accordance with a trend analysis.

3. The system of claim 2 wherein said historical income tax refund data comprises the amount of said taxpayer'"'"'s refund for the previous three years.

4. The system of claim 1 wherein said year to date income information for the current year comprises income data for the first three quarters of the year.

5. A computerized system for providing a loan to a taxpayer, comprising:

historical income tax refund data for said taxpayer, said historical income tax refund data comprising income tax refund amount data for at least one year prior to the current year and in a computer;

year-to-date income data for the current year, for said taxpayer, wherein said date is prior to the end of the current tax year and said year-to-date income data is in said computer;

a process in said computer to determine prior to the end of the current tax year an estimated income tax refund amount for said taxpayer for said current tax year using said historical income tax refund data, said year-to-date income data for a date prior to the end of the current tax year, and said year-to-date expense data for a date prior to the end of the current tax year;

a loan provided to said tax payer prior to the end of said current tax year in an amount based on said estimated income tax refund amount for said current tax year for said taxpayer as determined by said computer; and

an income tax refund for said current tax year, wherein said income tax refund is based on a tax return prepared using actual income data and filed after said current tax year for said taxpayer and is applied to the balance of said loan based on said estimated income tax refund.

6. The system of claim 5 wherein said historical income tax refund data is determined in accordance with a trend analysis.

7. The system of claim 6 wherein said historical income tax refund data comprises the amount of said taxpayer'"'"'s income tax refund for the previous three years.

8. The system of claim 5 wherein said year to date income information for the current year comprises income data for the first three quarters of the year.

9. A computerized system for providing a loan to a taxpayer, comprising:

historical income tax refund data for said taxpayer, said historical income tax refund data comprising income tax refund amount data for at least one year prior to the current year and in a computer;

present job verification data for said taxpayer, said present job verification data in said computer;

a process in said computer to determine prior to the end of the current tax year an estimated income tax refund amount for said taxpayer for said current tax year using said historical income tax refund data and said present job verification data;

a loan provided to said taxpayer prior to the end of said current tax year in an amount based on said estimated income tax refund amount for said current tax year for said taxpayer as determined by said computer; and

an income tax refund for said current tax year, wherein said income tax refund is based on a tax return prepared using actual data and filed after said current tax year for said taxpayer and is applied to the balance of said loan based on said estimated income tax refund.

10. The system of claim 9 wherein said historical income tax refund data is determined in accordance with a trend analysis.

11. The system of claim 10 wherein said historical income tax refund data comprises the amount of said taxpayer'"'"'s income tax refund for the previous three years.

12. The system of claim 9 wherein said present job verification data comprises data for estimating said taxpayers income for the current year.

13. A computerized system for providing a loan to a taxpayer prior to the end of the current tax year, comprising:

income information up to a date prior to the end of the current tax year, for said taxpayer, said income information in a computer;

expense information up to a date prior to the end of the current tax year, for said taxpayer, said expense information in said computer;

an income tax refund amount for at least one tax year prior to the current tax year, said income tax refund amount in said computer;

a process in said computer to determine prior to the end of the current tax year an estimated income tax refund amount for said taxpayer for said current tax year using said income information up to a date prior to the end of the current tax year, said expense information up to a date prior to the end of the current tax year, and said income tax refund amount for at least one tax year prior to the current tax year;

a loan provided to said taxpayer prior to the end of said current tax year in an amount based on said estimated income tax refund amount for said current tax year for said taxpayer; and

an income tax refund for said current tax year, wherein said income tax refund is based on a tax return prepared using actual income and expense data and filed after said current tax year for said taxpayer and is applied to the balance of said loan based on said estimated income tax refund.

14. The system of claim 13 wherein said income information for the current year comprises income data for the first three quarters of the year.

15. The system of claim 13 wherein said income information for the current year is extrapolated based on said taxpayers income from prior years.

16. The system of claim 13 wherein said estimated income tax refund amount for said taxpayer is determined in accordance with said taxpayer'"'"'s withholding rate and taxing authority rates.

17. A computer-implemented method for providing a loan to a taxpayer prior to the end of the current tax year, said method comprising:

determining an income tax refund amount for at least one tax year prior to the current tax year;

estimating at a computer said taxpayer'"'"'s income tax refund amount due for said current year prior to the end of said current tax year based on said income tax refund amount;

providing a loan to said taxpayer prior to the end of the current tax year in amount based on said estimated income tax refund amount due for said current tax year for said taxpayer as determined by said computer;

assigning said taxpayer'"'"'s income tax refund to said lender;

preparing a tax return for said taxpayer using actual data after the end of the current tax year;

filing said tax return with a taxing authority;

receiving said taxpayer'"'"'s income tax refund from said taxing authority; and

applying said taxpayer'"'"'s income tax refund to said loan based on said estimated income tax refund.

18. The method of claim 17 wherein estimating said taxpayer'"'"'s income tax refund amount comprises completing a trend analysis on said taxpayer'"'"'s income tax refunds from a plurality of years prior to the current year.

19. The method of claim 17 wherein estimating said taxpayer'"'"'s income tax refund amount comprises estimating said taxpayers income for the current year.

20. The method of claim 19 wherein estimating said taxpayer'"'"'s income for the current year comprises extrapolating said taxpayer'"'"'s income based on prior years.