Electronic Filing - Ohio Department Of Taxation

Electronic Filing - Ohio Department Of Taxation - 2011 Page 14

Processing a Direct Deposit

The IRS and the Ohio Department of Taxation will verify the direct deposit data submitted on electronic returns.

The department will complete the following tests before approving a direct deposit request:

compare the entries in the direct deposit fields of the return records,

identify account number duplications, and

compare the routing numbers to the list of valid routing numbers housed on the financial organization master

file

NOTE:

The IRS and Ohio Department of Taxation will validate the routing number provided to Ohio for all elec-

tronic deposits. If the routing number fails one or more of the validity tests, the department will not deposit the

refund, and the taxpayer will receive his/her refund as a paper check.

Multiple Electronic Deposits

Taxpayers may deposit their Ohio refund into three different accounts using any combination of the following four

account types; Checking, Savings, IRA or a 529 CollegeAdvantage accounts. For additional information please

refer to the department‟s

information release.

Note: Your software company will provide you with disclosure statements when requesting a direct deposit into

any of the four account types. You must inform your client of the disclosure(s), provide a copy upon request and

accept the disclosure checkbox before transmitting the direct deposit request.

Refund Anticipation Loans/Checks

A refund anticipation loan (RAL) is defined as money borrowed by the taxpayer from a lender based on the tax-

payer‟s anticipated refund amount. The department is not involved in or responsible for RALs. All parties to RAL

agreements, including electronic return originators (EROs), must ensure that taxpayers understand that RALs are

interest-bearing loans. The department is not liable for any loss suffered by taxpayers, EROs, or financial institu-

tions due to processing delays, reduced refunds, or direct deposits not being honored (resulting in refund checks

being issued).

NOTE: If you provide these services to your clients, you must inform them of the fees (breakdown of all fees as-

sociated with RAL/RAC) and the total combined refund amount (federal & state refund).

Electronic Filing - Ohio Department Of Taxation - 2011 Page 14