Would a tax return service who will take an assignment of a client's tax refund and give them the cash be considered an MSB? They aren't exactly cashing a check, because one does not exist at that point, but the funds are advanced to the individual and then paid to the tax service by an ACH item. They are doing this as a part of their business.

I'm going to go out on a limb and say maybe?? I can see where they are acting very similar to a pay-day lender, which FINCEN has opined are synonymous with check cashers.

Technically, by saying "maybe", you are only going halfway out on the limb...

Interesting....I had this discussion w/my tax lady last night. She and another tax preparer for a national company have discussed cashing checks for their clients. I told her that I felt that this would open a can of worms for her, what with having to have an AML policy, closer scrutiny, etc. She said she's going to stick with sending the customers to the bank.