In spite of the way the mainstream media portrays it, mid-April is not the prime time for the refund of tax dollars. It's more like mid-February, which makes Valentine's Day special for people who use their tax refunds for used car purchases and other big-time items.

That's according to Chip Wiley, Senior Marketing Advisor and Corporate Relations Director at TRS Tax Max. Since 1995, TRS (Tax Refund Services) Tax Max has specialized in tax preparation and electronic filing for the car dealer and payday lending industries.

He got into touch with us after reading our article on using tax refunds for used car purchases. He wanted to clear up the misconception that people could adjust their withholdings so as not to get large tax refunds during tax season.

He said, "Millions of Americans get refunds of $3,000 to $8,000 with zero federal taxes withheld on their W-2.  It is not a function of poor planning their withholding structure. This is a common misconception for people who either do not have kids, make over $50,000 per year, or both.  I hear it on the talk shows every year as well as the Kudlow Report on CNBC the other night."

Wiley said, "Any day now, the IRS is expected to start testing their system and processing tax returns. Although they have published an open date of Jan 31, they started accepting tax returns on the 22nd last year on a Jan. 30 open date. Based on the IRS 'under-promise & over-deliver' schedule last year, we are anticipating a similar time frame this year."

According to Wiley, "For dealers with Special Finance customers, the refund money is expected to hit the market from Jan 31 to Feb 28.

These are the customers who need their tax refund to survive and afford large purchases that require down payments." There are many customers who use their tax refund either to outright purchase a used car or for a down payment. Many dealers recognize this and work with firms like TRS Tax Max to get this money as quickly as possible.

Wiley said, "Sometime between the Super Bowl and Valentines Day, 99% of W-2 forms will have been received and the people who need the money will have filed their taxes. Here at Tax Max, the W-2 traffic falls off of the table after Valentines Day. Since the IRS will take 5-20 days to pay out tax refunds once they are filed, that is what causes the money flow to last into the end of the month."

Here are some major points that dealers should understand, Wiley said, as well as people looking to buy used cars with their tax refunds:

1. There is a reason why H&R Block & TurboTax advertise so much in January. The volume is through the roof.
2. A family with two to three children with a reported income of $15,000 to $30,000 and ZERO Federal Income Tax withheld on their W-2 form will get a refund of $6,000 to $8,700. Again, that is with ZERO Federal Withholdings.
3. Big tax refund customers spend the money before it arrives ... holiday debts, past due bills, down payments, big screen TV, and the new iPhone.
4. Most Americans will spend their ENTIRE tax refund within 24-48 hours.
5. The average tax refund for car dealer customers via Tax Max with children was $5,300 in 2013.

Wiley added, "Finally, the traditional media does not understand the car dealer customer, nor the [Special Finance] market. April is not tax season. April is only tax season for people who owe the IRS, do not care about their tax refund, or simply do not need it. Even journalists who work the [buy here, pay here] and [Special Finance] beat are surprised by the numbers."

Below is the breakdown of tax season, according to Wiley:

• Jan 20 - Feb 10 = Peak of W-2 traffic
• Jan 31 - Feb 28 = Peak of IRS funding season
• April 10 - April 15 = Peak filing season for people who owe or do NOT rely on their refunds for car purchases. 2% of the tax refund season comes in April.

As pointed out in the article on using tax refunds for used car purchases. " You'll end up paying too much. One of the problems with exuberance is impatience. Your money will be burning a hole in your pocket. You will be itching to spend it, which means you may not do your homework. You may not pay the right value for the used car."

In other words, take your tax refund and buy that used car. Just keep your wits about you so you don't overpay. And, as always, get  pre-purchase vehicle inspection.