The IRS has issued Direct Deposit Limits this year
In an effort to combat tax fraud, effective January 2015, the IRS will limit the number of refunds electronically deposited to a single savings or checking account or pre-paid debit card to three. Beginning with the fourth direct deposit refund to an account the tax payer will receive a notice informing that the account has exceeded the direct deposit limit and the refund will be converted to paper refund check and mailed.
While direct deposit may be made only to accounts bearing the taxpayer’s name, this will affect some families who deposit their refunds into family-held bank accounts. The plan is that the limitation will make it more difficult for criminals to obtain multiple refunds. This limitation will prevent preparers from using Form 8888 to pay their fees from the taxpayer’s refund – which is prohibited by Treasury Circular 230.
