Virtual Managed Solutions Posted January 13, 2009 Report Share Posted January 13, 2009 Had a quick question about this form. I remember reading somewhere on this forum that you could not deposit your tax refund into your tax preparers account. What if your preparer is a relative and are not really a tax preparer, just doing it for fun as a favor. Can you still have your refund deposited into their account? Quote Link to comment Share on other sites More sharing options...
imjulier Posted January 13, 2009 Report Share Posted January 13, 2009 Anyone doing it for fun or as a favor shouldn't be getting paid. If they are getting paid, they are a paid preparer. I know, it sounds redundant. Julie R Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 13, 2009 Report Share Posted January 13, 2009 You can only deposit your refund in an account with your name on it. taxbilly Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted January 13, 2009 Author Report Share Posted January 13, 2009 @imjulier - I'm not paying them per say, but in years past it was just easier to throw my W2's at them and say "do my return." Then I'd forget to tell them my bank info, so I'd just say, put it into your account and then give me the money when it gets there. It was more of a laziness thing and just easier to get it done right then and there and not have to wait around until I had the time to get the info to them. @TAXBILLY - Thanks for the response, that answers my question, but now I have other questions regarding the deposit. How come you can only deposit into an account with your name on it? Plus, it gets me to thinking, for the past 2 years or so this is what I've done. Had the money deposited into a different account. One that did not have my name on it. Will I be expecting any trouble in the future, or should I just count my blessings and do it the correct way from now on? Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 13, 2009 Report Share Posted January 13, 2009 The instructions say your name must be on the account. How in the world does the bank accept a direct deposit in your name into an account that does not have your name on it? taxbilly Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted January 13, 2009 Author Report Share Posted January 13, 2009 The instructions say your name must be on the account. How in the world does the bank accept a direct deposit in your name into an account that does not have your name on it? taxbilly I have no idea, but they allowed it. It may have been because we both had the same last name? Thanks for all your info, it did help. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 13, 2009 Report Share Posted January 13, 2009 Time to change banks. Luckily your last name is not Smith! :~) taxbilly Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted January 13, 2009 Report Share Posted January 13, 2009 Hey, want to use my account this year? I would bet that bank only checks last names. I would not want to bank there. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
MargaretMort Posted January 13, 2009 Report Share Posted January 13, 2009 My guess would be that Caribou, being a small town, has banks and bankers who personally know their clients. Nice but not necessarily smart anymore. Quote Link to comment Share on other sites More sharing options...
jainen Posted January 13, 2009 Report Share Posted January 13, 2009 >>Time to change banks<< Also time to change preparers, as that is one of the more serious ethical breaches in this business. The fact that it's a family member makes it somewhat worse in my mind because it goes both ways. You are asking your relative to violate a very clear legal standard and risk disbarment for your "laziness thing." Tell me again how your company can help tax professionals? Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted January 14, 2009 Author Report Share Posted January 14, 2009 @MargaretMort - This is true. Caribou is very small compared to the big cities and big banks. You can walk in and they know you by name. It's a great way to live, but not a great way to conduct business in that sense. I see what everyone means about changing banks. @jainen - Twice I stated they were not tax preparers. It was a relative who was doing their taxes online and suggested they could do mine as well. The only returns this persons does is their own and occaisionaly mine. I, myself, me who is also not a tax preparer / professional and someone who did not have the software to prepare it, allowed them to do mine as well. Just a plain old 1040 / Maine State return, nothing special, all it took was to enter W2 information and let the info flow over. And to add more to the story, it was right after I was getting back from military training and did not have a local bank. I was busy with other things and did not have the time to set up a bank account so I had them deposit my refund into their account. As far as our company helping people like yourself has nothing to do with my tax return. For one thing, it was years, and I do want to restate "years" ago. Long before VMSUS, long before CCH buying up ATX from UCG, long before UCG buying out ATX for the first time. My tax return has had, and further more, will have nothing to do with the abilily, professionalism and ethical standards of VMSUS. Honestly, I don't see how a mother of 3 helping out 1 of her sons with his taxes even relates to VMSUS. She is not a tax preparer. Just an average "Joe Shmoe" doing her taxes like every other god fearing citizen does when that time of year comes around. The reason I asked this question was because I noticed a topic where it had been discussed on this forum. Upon seeing that, in my mind, I realized that "wow, maybe that was against the IRS rules." Then, after the realization set in that I had no understanding of tax law, began thinking it only applied to CPA's, PA's, EA's or other associated tax professionals. Thinking back, a Form 8888 wasn't even used in the return. All bank info was input directly onto the 1040 and then efiled. In no way am I trying to sound condescending, brutal, harsh or trying demean the great community of this forum. I knew you guys were the ones to ask and came to the conclusion that my question would best be asked here. Since this was long ago, it probably didn't matter either way if I asked or not, but I'm the type of person to continually keep thinking about it until I get the answer. So in that sense, I do want to thank everyone for their knowledge. I feel all this has to get out, because some people are taking this in a direction I never intended, or even thought it would go. @BulldogTom - This is a question that probably should not be answered in the public eye. We should discuss this tomorrow. Why don't you give me a call and we can work something out :rolleyes: Quote Link to comment Share on other sites More sharing options...
MargaretMort Posted January 14, 2009 Report Share Posted January 14, 2009 Kyle, I am familiar with Caribou as I spent 1½ yrs at Loring AFB. My home town is about the same size and I am familiar with small town banking habits. As I said, in this day and age not a good idea but I can sense what happened. Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted January 14, 2009 Author Report Share Posted January 14, 2009 Kyle, I am familiar with Caribou as I spent 1½ yrs at Loring AFB. My home town is about the same size and I am familiar with small town banking habits. As I said, in this day and age not a good idea but I can sense what happened. Thank you Margaret. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 14, 2009 Report Share Posted January 14, 2009 And, even if you ignore what a paid preparer should not do but what an unknowing relative did in the past, you still have to worry about what a bank might do if you repeat this in the future. If the bank is paying attention, they will not deposit a refund in an account with a different name but will send it back to the IRS. Then, you'll be waiting weeks, months even, to receive a check in the mail. So, even if you're unaware of various regulations, you do want to make it as easy as possible for the IRS to return your money to you as quickly as possible and want the return name to match the account name. Don't forget to proofread the bank routing and account numbers, too. You keep our computers running smoothly, and we'll advise you on tax matters. Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted January 14, 2009 Author Report Share Posted January 14, 2009 I appreciate that Lion, thanks so much! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 14, 2009 Report Share Posted January 14, 2009 PS The Form 8888 is fairly new, allowing one refund to be split into more than one account, such as your IRA, savings, checking, brokerage account, etc. However, without Form 8888 and before it existed, you could directly deposit your refund. Again, hopefully in your own account, but I've seen others deposit without the name matching. And, I've seen a deposit get kicked back by a bank. Not on MY prepared returns, though. Quote Link to comment Share on other sites More sharing options...
David1980 Posted January 14, 2009 Report Share Posted January 14, 2009 Yeah, banks don't always check names. I would hope they're a bit picker when it comes to a direct debit though. As for 8888, one possibility is it was aimed at "forced bank products" when you went to a storefront store and were crazy enough to use their IRA product. I would put it as a low priority form, I've never used one. I've had married couples in-process-of-divorce ask about it, but they quickly decide not to bother when they realize if the full refund isn't funded whoever is first on the form gets more of the refund. Quote Link to comment Share on other sites More sharing options...
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