Personal Finance

Millions Of GA Taxpayers May See Refund Delays. Here's How To Avoid It.

An executive order from President Donald Trump makes changes to the way that federal tax refunds and other benefits are processed.

New changes from the Internal Revenue Service might delay long-awaited refunds for millions of Georgians who usually receive them via paper check as the tax season proceeds.

Last year, President Trump signed an executive order aiming to “modernize payments to and from America’s bank account,” which phases out paper checks and money orders in favor of direct deposit payments for federal tax refunds, as well as Social Security and Department of Veterans Affairs payments.

That may mean delays in refunds for Georgians who file their tax returns without direct deposit information. The IRS said that starting this year, it will still process individual income tax returns (the Form 1040 series) filed without bank account information, but it will temporarily freeze the refund until the taxpayer either provides direct deposit information or requests a paper check.

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Taxpayers can do this by refreshing their IRS Online Account, where they can either update their banking information, or request a paper check waiver if they do not have direct deposit information.

Taxpayers are advised to double-check their bank routing and account numbers before filing, and set up an IRS Online Account to respond quickly, if necessary.

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The IRS said it will freeze most direct deposits rejected by taxpayers’ banks, and will not automatically reissue them as paper checks. If a refund is frozen, the IRS will send taxpayers a CP53E notice on next steps.

These new rules do not apply to taxpayers who are minors, prisoners, deceased, live abroad or claim religious exceptions.

See here for more information.

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