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November 22, 2011

9

IRS Speeds Up Direct Deposit Refunds

by Tim Yeager, CPA
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Image via Wikipedia

Beginning in 2012, filers receiving a refund will be able to get it in as fast as 5 business days.  In prior years the fastest you could get a refund was 6 business days.

Direct Deposit refunds will also be deposited on Wednesdays instead of Fridays as it has been done in the past.  It is unclear why the IRS has chosen Wednesday instead of Friday.  But, of course, it is unclear why the IRS does a lot of things.

In order to get your refund in 5 business days you would need to e-file your return on a Wednesday morning by 11:00 a.m.  EST.  If you miss that cutoff, it will be 10 business days before you receive your refund since all IRS Direct Deposits are done on Wednesday’s in 2012.

The most obvious reason the IRS is reducing the refund turn-around time is to discourage filers from taking out loans against their refunds.  If you’re receiving your refund in 5-10 business days, you shouldn’t be borrowing your own money and paying hefty fees.

9 Comments Post a comment
  1. linda
    Jan 24 2012

    newt giengerich rules !!!!!

    Reply
  2. john
    Jan 24 2012

    vote newt!!!

    Reply
  3. Jan 24 2012

    I like Newt too, and Romney. But, what does that have to do with direct deposit refunds?

    Reply
  4. Feb 6 2012

    Thanks for the info! My sister keeps asking me to look up when the IRS direct deposits (she doesn’t have a computer) and I have been looking all over for an answer. Thanks a million

    Reply
  5. Teresa
    Feb 16 2012

    I efiled and was excepted feb 3 and still have no refund in the bank.

    Reply
  6. Aj
    Feb 23 2012

    The wmr website says my expected date is the 21st of feb, 2012. I filed feb 9 at 3am. In three days it was saying by the 28th and then said, expected date.. The 21st was on Tuesday and it is 1am on thursday the 23rd. Have any idea what to do?

    Reply
    • Feb 28 2012

      Feb 9th was a Thursday so you missed the Wednesday cutoff to get it on the following Wednesday, thus the 22nd should have been your refund date. Unfortunately the IRS has had delays this tax season. For many taxpayers they are delaying refunds for 1 week. First they speed up refunds then they delay some of them.

      Reply

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