Log Out

VSCPA Applauds Passage of SB 701 and HB 1286 Repealing the Debit Card Tax Refund Mandate

For Immediate Release
Contact: David Bass
(804) 612-9440
[email protected]

Richmond (April 20, 2015) — The Virginia Society of Certified Public Accountants (VSCPA) is pleased to report that the Virginia General Assembly reinstated the paper check option for Virginia individual tax refunds. Previously, taxpayers could only get their refund by direct deposit or using a prepaid debit card. SB 701, sponsored by Sen. George Barker (D-Alexandria) and HB 1286 sponsored by Del. Lee Ware (R-Powhatan) moved quickly through the General Assembly and were signed into law by Gov. Terry McAuliffe on March 10 and March 17, respectively.

Language included in the 2012 budget eliminated paper checks as an option for tax refunds. In its place, the Commonwealth contracted with a private corporation to issue debit cards to any taxpayer who refused to accept a direct deposit. Unfortunately, many taxpayers have reported problems with the use and fees associated with the debit cards. The relatively small savings to the Commonwealth was outweighed by the inconvenience and cost to those taxpayers who chose not to use direct deposit.

 “The VSCPA is pleased that the General Assembly voted to reinstate the paper check option. Our members have clients who had legitimate complaints about the onerous process for activating and using the cards as well as the numerous hidden fees,” said VSCPA President & CEO Stephanie Peters, CAE. “The VSCPA believes the increase in refunds issued via direct deposit have outweighed any initial cost savings that the debit card brought the Commonwealth.”

The VSCPA is the leading professional association dedicated to enhancing the success of CPAs. Founded in 1909, the VSCPA has 11,000 members who work in public accounting, industry, government and education. For general information, please visit the Press Room on the VSCPA website at www.vscpa.com, email [email protected] or call (804) 612-9440. To search for a CPA in your geographic region, visit www.vscpa.com/FindaCPA.

# # #

No votes have been submitted yet.