The federal government is one of the largest single users of the ACH network,
but did you know that they don’t follow the same NACHA Operating Rules as a
typical Originator? IRS tax refunds must be handled with care. The average IRS
tax refund is almost $3,000 and every financial institution receives them. With
such high volume, it is imperative that financial institutions understand the
requirements surrounding tax refunds to avoid potentially large losses. These
requirements address account number/name matching situations, deceased
recipients, refunds posting to incorrect accounts, and refunds as exception
items. This session will cover the rights and obligations of the financial
institution, accountholder, and tax preparer. Learn how to correctly handle
these exceptions to minimize your financial institution’s liability.
- What if the account is closed?
- What if the
accountholder is deceased?
- What if the payments post to the wrong account?
Who is at fault?
- Rights and obligations of the RDFI, consumer, and tax
- How the IRS is helping protect taxpayers from fraud
Michele L. Barlow, AAP, NCP, PAR/WACHA