IRS Speed of DD

[erchess]

At one time the IRS was planning to offer Direct Deposit within just hours of Acceptance and was going to offer the option of withholding our fees.

I didn't dream that up did I?

What became of the notion? I do notice that this year they're saying they will DD a week from the end of each cycle but of course it remains to be seen whether there will be even more returns pulled out for slower handling than in past years.

[ChEAr$]

At one time the IRS was planning to offer Direct Deposit within just hours of Acceptance and was going to offer the option of withholding our fees.

I didn't dream that up did I?

What became of the notion? I do notice that this year they're saying they will DD a week from the end of each cycle but of course it remains to be seen whether there will be even more returns pulled out for slower handling than in past years.

I kinda suspect you've been dreaming, Ed. Remember that it is not IRS which makes direct deposits, but their parent, the good ole' US TReasury. So naturally there will be some lag between acceptance of an efile and direct deposits caused by processing by IRS and certifying a refund.

However more use of MeF this year will generally speed things up I believe.

[spanel]

At one time the IRS was planning to offer Direct Deposit within just hours of Acceptance and was going to offer the option of withholding our fees.

I didn't dream that up did I?

What became of the notion? I do notice that this year they're saying they will DD a week from the end of each cycle but of course it remains to be seen whether there will be even more returns pulled out for slower handling than in past years.

The first question is NO, you didnt dream that up. I would expect the the D of T over the next few years to get it down to 1 to 2 days.. hours.. i would doubt.

The IRS was pondering the ability to have Tax preparers take money directly out of the customers refund.. then deamed that was a bad idea.

The D of T is using the new CADE2 system for refunds... so expect more money than not, coming faster.

chris

[Gary2]

The IRS was pondering the ability to have Tax preparers take money directly out of the customers refund.. then deamed that was a bad idea.

I remember seeing that the IRS was considering it, but don't remember seeing any followup for or against it. Have they officially decided against this? Or is it something that's been officially moved to the back burner, with the heat turned off?

[taxmandan]

I remember seeing that the IRS was considering it, but don't remember seeing any followup for or against it. Have they officially decided against this? Or is it something that's been officially moved to the back burner, with the heat turned off?

TheIRS did mention the possibility but it is a low priority for them so nothing yet. TheIRS doesn't really want to help preparers, their latest news blurb about the $385million uncollected taxes in 2006 even blames small businesses and us for most of it for not reporting all the clients' incomes on professionally prepared returns. Their going to get all that uncollected tax because they are now licensing paid preparers!
<sarcasm off>

From FS-2012-6, January 2012:

Tax Return Preparers

The IRS initiated a comprehensive review of the tax return preparation industry in 2009. A multi-faceted return preparer strategy was launched in 2010 to ensure top-notch professional and ethical service to taxpayers. Prior to this initiative, only CPAs, attorneys and Enrolled Agents were subject to professional credentialing. All other paid return preparers were not subject to any mandatory training or testing.
The compliance strategy is being phased in over several years. The end result will be: all paid return preparers will be registered with the IRS, identified on the returns they prepare, pass a competency exam, and complete annual continuing education of tax law and professional conduct.
This compliance strategy will cut down on inaccurate and fraudulent returns. It also makes it easier for the IRS to catch unscrupulous return preparers. In addition, these efforts will help improve service to taxpayers and assist with voluntary compliance.
(snip)

[okie1tax]

Irs Dd

Latest I have seen

http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/2012/01/treasurys-tax-refund-debit-card-experiment-apparently-failed-.html

[clr]

Pub 2043

The refund cycle chart for 2012 is DD on Wednesday's. Last year I believe it was on Friday's

[taxea]

I received info from IRS re this issue...its on my office computer. I will post it when I go into my office later today.

[Jiggers]

The refund cycle chart for 2012 is DD on Wednesday's. Last year I believe it was on Friday's

That is correct.

ACK by 11:00 AM on Wednesday, Direct Deposit on the next Wednesday.

Example:
ACK 1-18-2012 DD 1-25-2012
ACK 1-25-2012 DD 2-01-2012

Per IRS e-file Refund Cycle Chart

[Gary2]

Latest I have seen

http://dontmesswithtaxes.typepad.com...y-failed-.html

Notwithstanding the IRS experience, there are a handful of states that are either limiting the choices to direct deposit or debit card, making the debit card opt-out, or offering the choice evenly.

[DonPriebe]

Notwithstanding the IRS experience, there are a handful of states that are either limiting the choices to direct deposit or debit card, making the debit card opt-out, or offering the choice evenly.

New York introduced a state-branded debit card this year, and intended to eliminate paper check refunds. The legislature finally passed a law requiring that paper check refunds be made available thru November 2016.

http://www.tax.ny.gov/pdf/memos/income/m11_13i.pdf

[okie1tax]

Dd

Oklahoma is one of those states with the debit card, no paper check option.

[MAJ]

Instant Refunds...

I think that was an H&R Blick nightmare you had... LOL...

MeF is the engine behind near real time ACK instead of a 24 hour wait.
And yes, that will be 1 week for a refund instead of the average 8-12 days for e-file.

So your software MUST support MeF - NY Sate I just found out - Will not.
Thankfully - only a handful of them..

Does your software support MeF this year??

[DonPriebe]

... So your software MUST support MeF - NY Sate I just found out - Will not.
...

Good news! NYS has targeted implementation of MeF for this year! (In July)

http://www.tax.ny.gov/volunteer/volunteer_training.pdf page 48

[Gary2]

There are only three or four states not supporting MeF this year, MA being one of them. Since MA is also one of the very few states that doesn't get their returns from the IRS, this isn't a surprise.

I expect that by next year, all the states that rely on the IRS as an intermediary will have no choice but to support MeF and only MeF.