Fyi

[DTS]

My wife was checking IRS alerts tonight on our software and she saw that the IRS had mistakened 16,000 direct deposits for paper checks. The mistake was for e-files done yesterday and today. They will send our clients that are affected, letters around 2/3/06, the day the DD would have been deposited.

Dennis

[Koss]

Paper check instead of DD

Jeez...

That's going to wreak havoc in cases where the client received a refund anticipation loan.

The refund should be going by direct deposit to pay off the loan...

Instead it's going directly into the hands of the client. And clients who get RALs are unsophisticated enough that some of them will genuinely and innocently believe that it is some sort of "second refund" that they are entitled to.

And of course they are entitled to the refund. The check has their name on it. It isn't a second refund. It's the only refund. The part they don't understand is the check they received when they filed their return.

Burton M. Koss
koss@usakoss.net

https://www.usakoss.net

[Jesse]

And....

the check they receive from the IRS will be more than the RAL check. This could be interesting and just makes me that much more happy that I do not do RAL's.

[Donanita]

Phone Calls

and how many clients are going to call you and want your to explain why they didn't get their refund in the bank when you told them they would.I always give them a date and tell them it is an estimate depending upon the IRS.I think we get blamed for a lot of the IRS's screw ups.