Our Favorite Time of Year: Direct Deposit of #TaxRefunds
Once again the time is upon us, that glorious period known as tax season. The IRS began accepting tax returns on January 31st, officially kicking off the 2014 processing period. Most individuals choose the e-file option so that they can receive their funds as soon as possible, via ACH direct deposit – the IRS indicates that on average, refunds are issued within about 10 days after acceptance of your return (though they advise that you can expect to wait up to 21 days). While direct deposit is the most safe, reliable, and convenient way to receive Federal payments, there can be a few issues that arise as well. Luckily for us, the IRS has a resource page with FAQs to provide financial institutions with useful info to reference while assisting consumers during the 2014 tax filing season. The website can be found here, and I have listed below a few examples of the questions answered on their resource page:
- How can a Receiving Depository Financial Institution (RDFI) identify which office is originating IRS tax refund payments?
- What is an RDFI’s obligation when it discovers that an IRS tax refund has been sent to the wrong account?
- What actions should be taken if an RDFI is contacted about a claim of non-receipt of a tax refund?
- How should an RDFI respond to a customer who asks about the status of their tax refund?
- Can funds be split into multiple checking and savings accounts?
Again, these are just a few examples of the FAQs that are found on this page, which can be very helpful when the questions start rolling in. Also, here is a link to the 2014 Tax Calendar published by the IRS – as a reminder, even though the filing season started late this year Tax Day remains April 15th.