In today's tax preparation industry the refund delivery option is very important. Depending on your bank product provider, the example refund options below may differ.
Preparation fees deducted directly from the refund
If the taxpayer is requesting to have their preparation fees deducted from their refund amount then follow the instructions below:
1. Select FRM 8879
2. Choose Option 5 for the Refund Type
3. Navigate to the BANK APPLICATION
4. Select the requested Refund Delivery Option (this is dependent on which Bank Product Provider you have setup)
Tip: If Direct Deposit is selected, the tax preparer must enter the direct deposit information on the bank application and/or on the Client Data, and select the box to carry forward direct deposit information before transmission.