Minnesota Department of Revenue Gets Greener

Published On: 26th March 2013

From The Internet

The Minnesota Department of Revenue will be going greener by issuing their tax refunds via debit card instead of paper checks.

While most of the tax returns in Minnesota are handled electronically with direct deposit, there are still approximately 1 million paper checks issued for refunds each year. Some of those individuals do not have bank accounts at credit unions or banks.

This switch covers individual and not corporate tax refunds and the purpose is to cut costs, adding an environmental benefit due to the reduction in paper consumption. This also reduces the possibility of check fraud, saving the state around $400,000. People with debit cards will also get their refunds approximately 30 days earlier than with paper checks due to not having to go through three different state agencies before making it to the taxpayer and will eliminate the need of the taxpayers to go to locations that will cash the checks.

Another hope of this program is to reduce the need for refund anticipation loans, which are very expensive and consist of their own problems. People will be able to use the debit card the same way they use the prepaid card for rapid refund, but money cannot be reloaded on the card.

Approximately seven states have already made these changes, eliminating the agencies in which paper checks must pass through. As of now, all that needs to be determined is how the vet card issuers will place the refunds on the cards.


Source: http://www.startribune.com/business/195480151.html