E filing and Direct Deposit of refund

[susieq]

Have had a couple of clients reporting that their refunds were not deposited on the day that we told them they would get them. Is the IRS backed up? Thought general rule was if you transmitted by Thursday AM, you would have money in the bank a week from that next Friday. What experiences are you having?

[Bird Legs]

E-File-Direct deposit

It takes the IRS 1 or 2 days to accept the return after it has been transmitted.
Once the IRS accepts it you should be notified of this and the notificiation should
also include the expected date the deposit will be made. This is the date that the
client should be notified of.
I usually tell my clients that it takes about 10 days after the IRS has accepted the return
That the deposit will be made.

[Matt Sova]

Week or 2

If the IRS accepts the return by, I think, Thursday before noon, then it should be in their account by the following Friday. As Bird stated the key word here is accepts.

That said, I usually can tell my clients exactly how long it will take depending on when they come in to sign the return. I am noticing acceptance within 24 hours.

[taxmandan]

Refunds

We handle it almost like BirdLegs, we tell them it will be 10 BUSINESS days after IRS acceptance, and the it SHOULD be deposited, I never tell them it WILL be deposited, cause they will take what you say as gospel and no excuses if it's late!

[Chief]

Refunds

I usually consult an IRS chart that tells the approximate date of the refund. So far pretty accurate except for that time that IRS changed 10,000 returns from electronic deposit to electronic mailed. However, ten days is a good rule of thumb.

[djack1040]

Taking Longer Than Scheduled IRS Refunds

Susieq:

This is my ninth year doing a substantial number of direct deposit IRS refunds. Generally speaking, I have experienced a somewhat higher than usual rate of "rollover" of scheduled refund dates to subsequent pay periods.

The IRS has not identified the cause other than to say it is "an internal systems problem".

Your best bet is to go to "Where's My Refund" at www.irs.gov and see what is reflected on the status page.

[Gretel]

It never worked for me, with my software, e-filing the tax return Thursday morning and be able to get it accepted until the noon deadline.

So I forget about the Thursday deadline and in my mind the deadline is Wednesday night. It always worked that way. It was so much in my mind that I even forgot that the deadline actually was Thursday.

[Safire]

I print out the IRS Refund Cycle Chart and always circle where it says "IRS does not guarantee a specific date" at the bottom and give that to my client.

http://www.irs.gov/pub/irs-pdf/p2043.pdf

I also always try to give myself a day or so extra if possible for unexpected rejections. If I am going to transmit on Wednesday, I make the client aware that it might fall to the following transmission week on the chart.

[susieq]

Direct Deposited Refunds

Thank you for your replies. Yes, I agree that we should plan on transmitting by Wednesday night. Acceptances seem to be coming in quickly - sometimes within a few hours right now. Just didn't know if I was the only one having difficulty as far as timeliness of the deposits.

[Brian EA]

Two Thursdays have to pass before your refund is direct deposited - which means that you can give your client a tentative date of their refund. The key point is that the return must be accepted before wednesday midnight.

Let us say your return was accepted on sunday feb 26. Your dd will be on friday march 10. If it is accepted on tuesday feb 28 your dd will still be on march 10. Th shortest period is 8 days . the longest period is 16 days. Th reund is always deposited on a friday.
For those clients who prefer to have their checks mailed they will have to wait an additional 10 days. The check is printed on friday then mailed out so they will probably receive it on tuesday

[ecb34691]

With 3 IRS drains a day this year, I'm seeing faster turn around on all returns. I know that I can transmit at 10:55am through my Jackson Hewitt server and make the 11:00am drain at Philadelphia and have my acceptances and or rejects back by 1:30pm. Same with the 7:00pm drain, we have acceptances by 8:30pm (don't know about the 2:00am drain because I'm not there). As far as the IRS cycle, our non-RAL clients who get a bank check through us, these check files start coming in on Wed. pm or Thurs. am for the Friday cycle. These are in the same direct deposit files as any other bank deposit.

In fact there are some direct deposit items coming out 3 - 4 days after acceptence. The IRS has started a slow implementation of the new CADE system. They did a pilot last year of 25,000 EZ returns. This year they are expanding to do all EZ's and what they call "single page" 1040/1040A. (no dependents, no credits, standard deduction, etc.). This is the "wave of the future" as they replace their 40 year old systems technology.