Which refund option(s) must you always present to a client when explaining financial products? a) DEEPBLUE Debit Account b) Refund Transfer c) Easy Advance d) Check Printed.in the office e) IRS, Direct Deposit and IRS mailed Check.
The Correct Answer and Explanation is:
Correct Answer: e) IRS, Direct Deposit and IRS mailed Check
Explanation:
When discussing refund options with clients during the tax preparation process, it is mandatory to always present the IRS standard refund options first. These include:
- Direct deposit from the IRS into the client’s bank account
- A paper check mailed directly to the client by the IRS
These options are provided directly by the Internal Revenue Service and do not involve any additional fees or third-party financial products. Because they are the standard, no-cost options, federal law and IRS regulations require that clients be informed of them before any other fee-based or bank product options such as refund transfers or advances.
Other choices listed in the question, such as:
- a) DEEPBLUE Debit Account
- b) Refund Transfer
- c) Easy Advance
- d) Check Printed in the Office
are all optional, third-party financial products that may involve fees, bank participation, or specific eligibility criteria. These should only be offered after the client understands the IRS options.
This requirement is in place to ensure transparency and to protect clients from feeling pressured into choosing services that could cost them money or delay access to their refunds. By offering the IRS options first, preparers help clients make fully informed financial decisions.
In summary, always present IRS Direct Deposit and IRS Mailed Check as the first and required refund options when explaining tax-related financial products. This ensures compliance with IRS rules and provides the client with clear, no-cost options to receive their refund.
