IRS refund direct deposit rejection and client notification
UltraTax/1040 defaults to not submitting a direct deposit request (either on 1040 page 2 or on Form 8888) when a client falls under IRS Direct Deposit Reject 44.
An IRS Direct Deposit Reject 44 situation exists when the total direct deposit request is $10,000, total tax is zero, and withholding plus excess FICA totals $10,000 or more.
You can force the refund by selecting
Direct deposit refund (Force)
on the Bank
screen. Forcing the direct deposit might still result in the taxpayer receiving a paper check and a possible 10-week delay in receiving the refund. You can select a custom paragraph to notify the taxpayer that their direct deposit request couldn’t be submitted because of IRS limitations, or you can select
Direct deposit refund (force)
to alert the taxpayer that the IRS might reject the direct deposit request, meaning a paper check might be issued.To select a custom paragraph for an individual client, go to the
Letter
screen, then select custom paragraph 66 IRS Direct Deposit Limit (FI)
from one of the Paragraph No.
fields. To select a custom paragraph to print for all clients whenever it applies, select
Setup
, 1040 Individual
, then either Letters & Emails
or Filing Instructions
under the Federal
tab. Next, select the Custom Paragraphs
tab, then mark the IRS Direct Deposit Limit (FI)
checkbox.
