The Louisiana Department of Revenue has sent duplicate state tax refunds. One file with a settlement date of March 13, 2019 and another with a settlement date of March 14, 2019. Only credit Entries seem to be duplicated.
The Louisiana Department of Revenue will be sending Reversal Entries for the duplicate refunds beginning today. They are estimating that the process will be completed by Monday, March 18, 2019. They will bill the recipients directly for any Reversing Entries that are unable to post.
Southern Financial Exchange suggests you let all the ACH Entries (duplicates and reversals) post. If the customer/member withdraws the funds for the duplicate Entries before the Reversal Entry is presented for payment and the account does not have sufficient funds to pay the Reversal Entry, the Reversal Entry should be returned NSF (not as unauthorized).
We also suggest that you alert all employees of the situation and explain that the Louisiana Department of Revenue will be reclaiming the duplicated funds. If a customer/member chooses to withdraw the duplicate funds, they may be subject to interest and fees applied by the Louisiana Department of Revenue. This information should be passed on to all customer/members that inquire about this situation.
Please be aware that the Financial Institution maybe be subject to some risk if the Reversal Entry is allowed to be paid into the overdraft or into a predetermined overdraft amount.
Should you have any questions, please contact us at (504) 525-6779.