The Federal Reserve does NOT issue tax refunds

[Ken]

Don’t get your hopes up because of the various posts about the Fed issuing ACH payments today at 5:30pm EST. That has nothing to do with tax refunds. Our tax refunds come from the Bureau of Fiscal Services, a subordinate agency of the Treasury Department.

[Ken]

It’s true that they’re part of the ACH system, but there’s no reason to automatically assume their resumption of ACH transfers means they’re sending along refund payments. It could be literally anything. I see a lot of angry people on here being misled by false information and hope this will help quell some of that.

Cheers

[saabguy]

It is true they send as an ACH. I don’t know about the who sends them. It is possible if they are working today they could transmit the ACH today. However the transit time for an ACH is 48 hours. So even if they did post them today. No one would see the deposits until at least Wednesday morning as the data files moves through the clearing house. That being said the IRS does tend to give themselves some extra time so Its likely they could have transmitted some Friday before the close of business, which could possibly turn up in accounts tomorrow. I personally feel like a lot of these 2/22 folks will start popping up with deposits as early as Wednesday.

[Citizen]

I thought the same thing, but its true that they don’t issue them, just transfer the funds from one side to the other.

“The automated clearinghouse (ACH) system is a nationwide network through which depository institutions send each other batches of electronic credit and debit transfers. The direct deposit of payroll, social security benefits, and tax refunds are typical examples of ACH credit transfers”

https://www.federalreserve.gov/paymentsystems/fedach_about.htm

[JV]

Thought so 😓😫

[Author]

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