What should be done if the taxpayer chooses both federal and state refund transfers?

If a taxpayer chooses both federal and state refund transfers, the proper protocol is to deduce the single processing fee from the first refund received. This means that the taxpayer will only pay one fee, simplifying the process and reducing the overall cost associated with accessing their refunds.

This method is designed to streamline the experience for the taxpayer, as handling multiple fees for each refund could lead to confusion and increased costs. By applying a single fee to the first refund, the process remains clean and manageable, enabling taxpayers to focus on their overall refund rather than being burdened with multiple deductions.

In contrast, assessing separate fees for each refund or having no fees for state refunds would complicate the refund transfer process and could lead to dissatisfaction among taxpayers who would prefer a straightforward fee structure. The idea is to optimize the process while being fair to both the taxpayer and the tax service providers involved.