The IRS plans to put in place new procedures starting next January to limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three, as part of an effort to combat fraud and identity theft, including fraud committed by unscrupulous tax preparers.
As part of the new procedures next tax season, the fourth and subsequent refunds automatically will convert to a paper refund check and mailed to the taxpayer.
In addition, taxpayers will receive a notice informing them that their account has exceeded the direct deposit limits and that they will receive a paper refund check in approximately four weeks if there are no other issues with the return.
The direct deposit limit is intended to prevent criminals from easily obtaining multiple tax refunds.
For more information, or for answers to any questions you may have, please contact a team member at Rackers & Fernandez, LLC.