July 9, 2014
As part of the ongoing IRS effort to combat fraud and identity theft, beginning with the 2015 filing season, the IRS will limit the number of refunds that may be electronically deposited into a single bank account or pre-paid debit card to three.
Once the limit of three is reached, any subsequent refunds will be switched to a paper check which will be mailed to the taxpayer at the address that is included on their federal return.
If this occurs, the taxpayer will receive a notice informing them they have exceeded the limit of direct deposits that may be made to a single account and that they will receive a paper check within 4 weeks.
It will also prevent tax preparers from obtaining payment of their tax preparation fees by having part of the taxpayer’s refund deposited into their bank account through the use of Form 8888 (Allocation of Refund) or by preparers opening a joint account with the taxpayer. Direct deposits must be made to accounts bearing the taxpayer’s name. Any preparer who does this is subject to penalty under the Internal Revenue Code and discipline under Circular 230 (Regulations Governing Practice before the Internal Revenue Service).
For more information see the IRS announcement for Direct Deposit Limits on the IRS website.
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April 24, 2019
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Reminder of 2018 Itemized Deduction Changes
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Qualified Business Income Deduction (20% Deduction for Certain Pass-Through Income)
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