I only deposit refunds into accounts with taxpayer's names on it, both if MFJ. Some new clients have told me that a son has had his refund deposited into parents' account because son doesn't have one. Some MFJ refunds are deposited into just one spouse's account. Does this work? I thought TP had to have access to money - thus depositing into one's own account. Does anyone else do the depositing whereever the TP wants. Am I being too strict?
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It will work. But I would get something signed that they understand the ramifications of this and possible inaccessibility of the funds under certain circumstances, and a statement relieving you of any liability. -
I wouldn't even do that because U S Treasury regulations prohibit refunds directly deposited into any account other than taxpayer(s).Originally posted by Burke View Post
No matter what others may do, take the high road.ChEAr$,
Harlan Lunsford, EA n LAComment
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Not to mention that it's usually the bank that restricts the deposit of MFJ refunds into a one-spouse-only checking account. The rationale is that both taxpayers are entitled to the refund but without both names on the account, one spouse does not have access to the funds.Comment
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Especially sucks when you do an 8888 to split a refund between separated (not divorced) couples and one gets their share, the other doesn't because their bank refuses it when it's not a joint account.... Terrible form, that 8888, has almost no purpose without issues.Originally posted by rgtaxservice View PostComment
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Not sure now...
I've never had a problem with it.....but maybe I need to rethink it. I've been doing it for years....the 8879 pretty much allows this as it states they are attesting to the direct deposit to whatever the tax return indicates. Banks haven't had a problem with it the last several years also.Comment
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