For many Mainers, the only thing worse than mud season is tax season. And right now many of us are in the middle of preparing our federal and state income taxes.

Many filers agree to refund anticipation loans – RALs – offered by tax preparers to hasten the refund process. These loans often come, however, with exorbitant interest rates.

More than $1.4 billion in RAL costs were paid by 12 million Americans in 2004 at annual percentage rates ranging from 70 percent to more than 700 percent. That equals nearly $5 for every man, woman and child in the country.

Other charges include electronic filing fees, application fees and a fee to cash the loan check. (We recently heard an unsubstantiated story of a local preparer charging $300 just to cash such a check.) The cost to shorten the wait for a refund can easily add up to 10 percent or more of the check.

A sad corollary that magnifies the problem is that there are more than 35 million “unbanked” Americans, that is, those without a bank account who are forced to pay 3 percent to 7 percent of their refund check just to cash it.

As pressure has mounted by consumer advocates to curb these practices, some RAL lenders have begun to disperse RALs as prepaid debit cards. There is still the issue of high interest fees, but the check-cashing fees are avoided.

Yet, with these debit cards, there are fees for “shipping and handling.” Some lenders will add a “monthly fee” to the card if it is not spent quickly or an “inactivity” fee if not used during any given month.

Another RAL risk is that an anticipated return may not equal actual refund. You will still be on the hook for the difference if the actual refund is less than expected – and at high interest rates.

If you are unable to repay the loan, your credit rating may suffer, legal action might ensue, and your wages could be garnished.

Here are a few guidelines for a more profitable income tax season:

. Keep all W-2s, 1099, interest payments and other material at the ready. And make copies for your files.

. Get the correct forms and give yourself plenty of time. Have a family member or trusted friend review your work. Check your math and check it again. Quadruple-check your Social Security numbers.

. Electronic filing and direct deposit make any refund much faster.

Stuck and confused? IRS agents and other free tax preparation services are available to assist. Give them a call.

For the unbanked:

. Get a bank account or join a credit union. Check around to get the best deal. Many banks and credit unions require only a small deposit ($10 to $25) to open an account. This will allow you to use direct deposit. Also check out debit card and other services (money orders, etc.) that the credit union or bank might offer at low or no cost.

. Plan to use direct deposit of your tax refund. Ten days or so and your money is deposited into your new account. Quick. Simple. Safe.

. Avoid check cashing fees. Go to your new credit union or bank; it will cost little or nothing.

Benjamin Franklin said: “Nothing is certain except death and taxes.” Clearly, he was not from Maine or he would have known that mud season is certain as well.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded nonprofit consumer organization. Individual membership costs $25; business rates start at $125 (0-10 employees). For help and information write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.