Massachusetts Residents Must Complete This Step To Receive ‘Large’ Refunds Before June

If you haven’t already, you have about a month to file your taxes. While there are some updates to note, missing a small step could delay your potentially “very large” refund until June.

Over the years, I've noticed that choosing direct deposit usually results in faster refunds. Without it, you may experience a longer wait for a mailed check. This year, residents are required to select direct deposit because of an executive order enacted last year that is now in effect.

President Trump issued an executive order mandating that all payments be made exclusively through direct deposit

WWLP reports that President Trump has signed an executive order to modernize all transactions involving U.S. bank accounts. The goal is to gradually phase out 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 occurs if you opt not to select Direct Deposit?

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

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What Happens if Your Refund Gets Frozen?

If your refund is frozen, you’ll receive a CP53E notice. This notice advises you to add or update your direct deposit information on the IRS website within about 30 days. If you do not respond, the IRS has indicated it will send you a paper check after 6 weeks.

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

If your direct deposit is rejected, the TAS indicates that you need to take action, as 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 don't have your direct deposit information, you can ask for a waiver to get a paper check through your IRS Online Account.