Massachusetts Residents At Risk For 'Frozen' Tax Refunds

Tax season is here, and many Massachusetts residents are eager to file their taxes quickly. While it's helpful to start early, rushing this year might lead to small mistakes that could delay your refund.

Over the years, I've noticed that choosing direct deposit typically results in the fastest refunds. If you don't select it, you may encounter a longer wait for a mailed check. This year, residents are required to opt for direct deposit following an executive order enacted last year that has now taken effect.

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President Trump Signs Executive Order Mandating Direct Deposit Only

WWLP states that President Trump has signed an executive order to modernize all payments to and from U.S. bank accounts. The order's goal is to phase out paper checks and money orders for federal transactions, with certain exceptions. It includes payments like Social Security, Veterans Affairs benefits, and federal tax refunds.

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What occurs if you opt not to select Direct Deposit?

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

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What Are the Consequences if Your Refund Is Frozen?

If your refund is frozen, you’ll receive a CP53E notice. This notice instructs you to add or update your direct deposit information on the IRS website within approximately 30 days. If you don't take action, the IRS has stated they will mail you a paper check after six weeks.

What should you do if there's a problem with Direct Deposit?

If your direct deposit is rejected, the TAS indicates you need to take action since paper checks won't be sent automatically. You'll receive a CP53E notice only once, and you're allowed to update your bank details only once, per the agency.

If you don't have your direct deposit details, you can ask for a waiver to receive a paper check through your IRS Online Account.

Tips to Avoid IRS Scams During Tax Season

There are so many scams going on around tax season trying to steal your refund check, here are some tips to make sure you don't become a victim.

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9 Non-Deductable Expenses for Tax Season

There are always things we can and cannot claim, and some grey areas. There's always an exception to the "rule" too, read below and check out some exceptions as well.

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