Refunds

Refunds result after attempts to offset, contribute and/or carry forward. The credit amount is given back to the taxpayer in the form of a paper check or a direct deposit. The taxpayer could either authorize a one-time direct deposit by putting bank account information on the tax return or indicate a recurring direct deposit for all refunds. In the case of a recurring direct deposit, the bank account information stored for the taxpayer on the account will be used.

Configuration on the overpayment process type indicates the mechanism for issuing a direct deposit. The options are Bank Event (recommended) and “credit” payment that triggers an ACH staging record. The credit payment is legacy functionality and not recommended for new releases.

Fastpath: Refer to The Big Picture of Bank Events for more information.