"Specifically, the report notes that while the majority of refunds were issued electronically last year, "taxpayers who do not provide direct deposit information may experience significant refund delays, as the IRS will generally hold refunds for up to six weeks while requesting banking information or determining whether an exception applies, with paper checks only issued afterward." As a result, some taxpayers will be disproportionately affected by the agency's phasing out of paper checks."
"As a result, some taxpayers will be disproportionately affected by the agency's phasing out of paper checks. That includes taxpayers without bank accounts, or who are disabled, elderly, or underbanked, and "other vulnerable taxpayers for whom paper checks have often been the only practical means of receiving refunds needed to cover basic living expenses." Average refunds last year tallied $3,167, the report says-a significant amount for many households."
Short staffing and the transition from paper checks to digital refunds are major IRS challenges this tax season. Taxpayers who do not provide direct deposit information may face refund delays of up to six weeks while banking information is requested or exceptions are determined, with paper checks issued afterward. Taxpayers without bank accounts, disabled, elderly, and underbanked individuals will be disproportionately affected by the phase-out of paper checks. Average refunds last year were $3,167, a substantial amount for many households. The Taxpayer Advocate Service exists to strengthen taxpayer rights, reduce taxpayer burden, and improve IRS performance.
Read at Fast Company
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