International ACH transactions for state returns

There are regulations affecting international electronic funds transfers processed through the automated clearing house (ACH) network. An international ACH transaction (IAT) is a direct deposit to an account in a U.S. bank that automatically forwards the refund to an account in a foreign financial institution, or a withdrawal from a U.S. bank account that receives the funds for that transaction from a foreign account.
While the IRS can process IATs, state agencies can't. A direct deposit or electronic funds withdrawal request won’t occur for a state return if you mark the
Non-US financial institution
field on the
Bank
screen. If you marked this box on the federal
Bank
screen, enter domestic bank information on the state's
Bank
screen if you want direct deposit or electronic funds withdrawal.

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