These are the top 10 bank product funding frequently asked questions. These pertain to the taxpayer's bank application completed in conjunction with their income tax return.
For questions about enrolling with a bank as an electronic return originator, click here.
How do you tell if the bank application is approved?
Client status will display the Refund, Deposit, and Fees Overview for each taxpayer. This information can also be accessed through Bank Product Funding Report in web reports.
What happens if the bank app is declined?
If the bank chooses not to fund the refund, they will revert the refund back to the IRS who will issue a check.
How do I get my fees if the refund is not paid to the bank?
If the bank doesn't get the refund, you'll need to collect your fees directly from the taxpayer.
When do I get my preparer fees?
The bank will pay your fees after the tax return has been accepted and the IRS has paid the refund.
Why can't I set my preparation fee for more than $1,500?
Each bank sets its maximum preparer fee, so if you're finding you're not allowed to go beyond $1,500 (or some other amount) that explains it.
If the IRS changes the Taxpayer's refund, will I still get paid?
If the taxpayer utilizes a bank product to facilitate payment of their refund, the bank will deduct its fees and your tax return preparation fees from the refund, then pass the remainder of the refund to the taxpayer. If the refund is smaller due to an IRS offset, the taxpayer will receive less and depending on the amount of the offset you may also receive less.
What do the terms ERC and ERD mean?
ERC is Electronic Refund Check. ERD is Electronic Refund Deposit. Every bank offers both options. For more information on the different bank codes, click here.
Can Bank Products be used for State Refunds?
Yes, however the federal return must also utilize a bank product and the state return must be filed with the federal return.
Can a bank product be used on an amended return?
No, a bank products can only be used with an original tax return, not with an amended return.
Can a bank product be used on a prior year return?
Tax-related bank products can only be offered to your clients in the current tax year.
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