IRS Fraud Prevention – Refund Direct Deposits Per Account Limited

In an effort to fight fraud and identity theft, the IRS has set forth new limits on how many refunds can be directly deposited into a single account or pre-paid debit card. Effective January 2015 only 3 refunds can be deposited into a single account or debit card.  Fourth and subsequent refunds will be processed in the form of a paper check and will be mailed to the taxpayer. Taxpayers who exceed the limit on direct deposits will receive a notice informing them that they will receive a paper check in approximately four weeks, assuming there are no other issues with the return.

The limitation should prevent criminals from obtaining multiple refunds.  This limitation will not affect the majority of taxpayers and direct deposit remains the safest and fastest way for taxpayers to receive refunds. However, it may affect taxpayers in some cases, such as families in which parent’s and children’s refunds are deposited into a family account.

 

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