Direct Deposits BLOCKED

[luke]

ohio valley bank

Taxwise put a block on Refund-Advantage's Bank (Ohio Valley) routing number on Jan. 4th. They did this to force Taxwise users to use one of their authorized banking partners (SBBT, Republic, Chase, and River City). Taxwise charges a $10 transmission fee and a $15 to $21 Bank Technology fee on every bank product. If Taxwise users use any other Bank to fund their bank products, then Taxwise would not get these fees. This has alienated many loyal Taxwise users who will likely be looking for a new software company next year. As a result, any client of Ohio Valley bank cannot get a Direct Deposit thru Taxwise since the routing number is blocked.

Hopefully CCH and Taxwise will reconsider this position and not block competitor banks next year.

I wonder if Ohio Valley KNOWS this and I still wonder if it is LEGAL!?

[Koss]

Blocking Direct Deposit

It may not be illegal in the technical sense of the term.

But to me, it sounds like tortious interference in a business relationship, which is fertile grounds for a lawsuit.

It may also be a violation of IRS e-file regulations. The IRS requires all e-file providers to offer direct deposit to all taxpayers. The action taken by Taxwise has the effect of denying direct deposit of the refund to a significant group of taxpayers, i.e., any taxpayer who has an account at Ohio Valley Bank...

The software vendors, or transmitters, are e-file providers. They may or may not be EROs, but they are e-file providers. And they are subject to most of the same regs as an ERO.

BMK