Massachusetts Residents Are Reminded To Not Make This Mistake When Filing Their Taxes

Tax season has arrived, and many residents in Massachusetts are eager to file their taxes promptly. While beginning early is beneficial, rushing through the process this year could result in minor errors that might slow down your refund.

Over the years, I've observed that opting for direct deposit usually leads to quicker refunds. Without it, you might face a longer wait for a mailed check. This year, residents must choose direct deposit due to an executive order enacted last year that is now in effect.

President Trump issues an executive order requiring all payments to be made via direct deposit only.

WWLP reports that President Trump has signed an executive order to modernize all transactions involving U.S. bank accounts. The aim is to gradually eliminate paper checks and money orders for federal payments, with some exceptions. This includes payments such as Social Security, Veterans Affairs benefits, and federal tax refunds.

What happens if you choose not to select Direct Deposit?

The IRS Taxpayer Advocate Service (TAS) warns that if you're eligible for a refund but leave out your direct deposit information or provide incorrect details when filing taxes, your refund could be temporarily delayed. It will stay on hold until you either submit valid direct deposit information or choose to receive a paper check.

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What Happens if Your Refund Gets Frozen?

If your refund is frozen, you’ll get a CP53E notice. This notice advises you to add or update your direct deposit details on the IRS website within about 30 days. If you do not respond, the IRS has indicated they will send you a paper check after six weeks.

Read More: North Adams Property Owners Reminded To Shovel Their Sidewalks

What steps should you take if you encounter an issue with Direct Deposit?

If your direct deposit is rejected, the TAS indicates you need to take action because paper checks won't be sent automatically. You will receive a CP53E notice only once, and you are permitted to update your bank details only one time, as per the agency.

If you lack your direct deposit information, you can request a waiver to receive a paper check via your IRS Online Account.