BENEFICIAL CORPORATION SUBSIDIARIES DISCONTINUE LAWSUIT -- Discovery Shows Changes Cannot Be Made In Time Allowed -- IRS Reconfirms Direct Deposit Plans For Next Tax Season.WILMINGTON, Del.--(BUSINESS WIRE)--March 3, 1995--Beneficial National Bank and Beneficial Tax Masters, Inc., both subsidiaries of Beneficial Corporation, today discontinued their pending lawsuit against the Internal Revenue Service. On February 21, 1995, Beneficial National Bank and Beneficial Tax Masters, Inc., filed the lawsuit to require the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. to follow the instructions of taxpayers who sought direct deposit of the earned income tax credit The United States federal Earned Income Tax Credit (EITC) is a refundable tax credit that reduces or eliminates the taxes that low-income married working people pay (such as payroll taxes) and also frequently operates as a wage subsidy for low-income workers. portion of their tax refunds in connection with a Refund Anticipation Loan A (Tax) Refund Anticipation Loan (RAL) is a high interest rate short-term loan secured by a taxpayer’s expected tax refund. United States In the United States, the taxpayer commonly applies for the loan through a paid tax preparation firm. (RAL 1. RAL - Rutherford Appleton Laboratory (UK). 2. RAL - An expert system. ). The IRS had said it planned to mail paper checks to eligible EITC EITC Earned Income Tax Credit EITC Eastern Idaho Technical College EITC Emirates Integrated Telecommunication Company (UAE) EITC Education and Information Transfer Core EITC Electro/Information Technology Conference recipients, rather than electronically deposit the money in accounts set up for them at Beneficial National Bank. Finn M.W. Caspersen, Beneficial Corporation's chairman and chief executive officer, said, "We have learned during depositions and other discovery that the IRS cannot stop the mailing of the checks to our RAL customers at this time. Moreover, Beneficial National Bank, Beneficial Tax Masters and the IRS have discussed various alternatives to the mailing of checks, but no solution appears viable within the time available. Accordingly, continuing time-consuming and expensive litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. is not in the best interest of anyone." During the discussions, the IRS reconfirmed to Beneficial National Bank and Beneficial Tax Masters that necessary programming changes would be made to provide that in the next tax year such refunds, including the earned income tax credit portion, would be direct deposited in bank accounts at Beneficial National Bank and other banks as instructed by the taxpayer. Caspersen noted, "Beneficial subsidiaries will aggressively pursue collection activities involving customers who previously received a refund anticipation loan and now will also receive IRS checks in the amount of their EITC portion. Customer service representatives at three collection centers already are contacting RAL customers to explain the situation. We are optimistic about future tax years following IRS confirmation that EITC funds can be directly deposited to settle outstanding accounts of our refund anticipation loan customers." Beneficial Corporation is a $14 billion, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Stock Exchange-listed financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. holding company. Subsidiaries of the Company provide financial services through their various consumer finance, banking and insurance operations located throughout the United States, Canada, the United Kingdom and Germany. The Beneficial finance system includes more than 1,000 offices offering products and services that meet a broad range of consumer credit needs, including credit-related insurance. CONTACT: Beneficial Corp. Robert Wade, 908/781-3258 |
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