Tax Refund Deposited Into Wrong Account
An incorrect number can cause a major disaster and jeopardize your direct deposit tax refund. Getting the wrong account number on your direct deposit from your tax return could cause your refund to go into someone else’s checking account. You can check “Where’s my refund?” on the IRS website, but that will only show that the refund has been processed. It does not appear to have entered someone else’s account. Fortunately, there are ways to correct the error. In this article, we will be summarising tips for a tax refund deposited into wrong account.
If you provided an incorrect account number on your tax return, you should contact the IRS immediately. You may not receive your refund if you do not address this issue quickly enough.
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Incorrect account number for tax refund
When you enter an incorrect account number for your direct refund deposit, some situations may occur. Often the number doesn’t go beyond the IRS validation check, so you’ll receive a check in the mail instead of having the tax refund directly deposited into your account. If the number passes the IRS validation check, your bank will likely reject it and return the deposit to the IRS. Again, the IRS will send a check in the mail. If it is the correct routing number but the incorrect account number, there is a possibility that the check was directly deposited into someone else’s account. In this case, you must work directly with the bank to get your money back.
Address the problem
If you find out immediately after you’ve submitted that you entered the wrong number in your direct tax return deposit, call the IRS at 800-829-1040, Monday through Friday, between 7 a.m. and 7 p.m. and ask them to stop direct deposit. If the correct routing number is a question but an incorrect account number and your tax refund is in someone else’s account but the bank in question does not respond to your inquiries within two weeks, file Form 3911 with the IRS. This is called the “Taxpayer Declaration of Refund” and the filing of this form authorizes the IRS to begin tracking your refund. The bank must respond to the IRS within 90 days.
When the fund bank doesn’t come back
If the bank does not return the funds, the IRS basically exchanges. The responsibility then falls on you, as the case becomes a civil matter between you and the bank and the account owner who received your refund check in error.
How to Avoid Direct Tax Refund Deposit Mistakes
If you want to avoid the nightmare of depositing a tax refund into a wrong account, there is a simple solution. Double-checking and verifying your bank account information is the best way to protect yourself from direct deposit issues. This means that you must verify the work of a tax preparer if you have followed this path. And if you double-check your tax return and there is still an error, you may be able to correct it.
“If you find that your bank (account) information is incorrect after you filed the return but before the refund was processed, the IRS can update the payment method and issue you a refund check. Receiving a paper check can take six to eight weeks to receive your money, compared to a three-week direct deposit. But it’s worth waiting for if it means your refund travels in your own hands and not someone else’s.
Before you go, I hope this article tax refund deposited into wrong account is informational and helpful for you.