State Tax Refund Return Opt-In Program: Prevent Future Fraudulent Refunds
Developed by the State Revenue Agencies and Nacha, the State Tax Refund Return Opt-In Program makes it easier for financial institutions to return tax refund credits in cases of suspected error or fraud.
What’s In It For You?
Numerous financial institutions, as well as their state revenue agency customers, leverage Nacha Operating Rules and formats to recover questionable tax refunds sent via ACH credits. The effort aims to improve government and financial institution operations and processing and to prevent future fraudulent refunds.
Participate in the Program
If you would like to participate in the State Tax Refund Return Opt-In Program, please download and sign the agreement linked at the bottom of this page, then return it to Nacha. Submissions can be made online or through email to Nacha-Network-Rules@Nacha.org. Alternatively, submissions can be made to the Attn: State Tax Refund Return Opt-In Program via fax ((703) 787-0996) or U.S. Mail (2550 Wasser Terrace Ste 400, Herndon, VA 20171).
In addition to the State Tax Refund Return Opt-In Program, states may also participate in the External Leads program to offer additional options for the handling of potentially suspicious tax credits. See the fact sheet below for additional details.
State Financial External Leads Fact Sheet
The below roster contains the current list of participating states and corresponding ODFIs. A Participating RDFI may return a suspicious return under this program to any Participating State/ODFI.
Participating State and ODFI Roster
Learn more about becoming a Participating State. States or their ODFIs wishing to become a participant should also contact us at the link below.
- State Tax Refund Opt-In Program - RDFI Program Rules and Agreement - (download)
- State Tax Refund Opt-In Program - RDFI Program Rules and Agreement - (download/online submission)