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Entered correct direct-debit info, but TurboTax sent someone else's bank info to the IRS

On April 10, 2022, I did my taxes with TurboTax, the free online version, same as last year. I got a refund from the IRS but I owed money to the state, same as last year.

Turbotax asked me, would I like to mail a paper check or would I like direct fund transfer from my bank. I said Direct.

Turbotax asked me, Do you want to use the same banking details that you have on file already? I confirmed that the details were correct and said Yes.

I downloaded a PDF copy of my full return for my records, and then I submitted the return. No problem.

On April 29 I got a letter from my state tax agency saying that my direct debit payment could not go through, and so I owe penalties and interest.

I contacted my bank, and they said they didn't get any transfer request.

I contacted the state but it was over 2 hours hold time so I contacted TurboTax.

I confirmed my banking info over the phone with the rep and .... it turns out TurboTax submitted a totally different routing number and account number with my return! Not off by a couple digits like a typo -- entirely different numbers, belonging to a different bank that I've never used, in a different state.

So the IRS successfully deposited my refund into somebody else's account, and the state charged me a penalty. The IRS is investigating and will get me my refund in 120 days, they said.

Meanwhile I have spoken to numerous phone support supervisors at TurboTax and they say it is not possible that it was an error on that end.

I have the original PDF that I downloaded at the moment I filed, showing the correct info, and I have gone over that PDF via screenshare with the reps, but they say: They cannot escalate the issue to the people who fix the software, indeed there is nothing at all that can be done, and I am responsible for the penalty and interest.

What the heck? At least admit that it is an error, and report it to your software people, instead of implying that I am just spending hours and hours and hours on the phone with you, for what, to rip you off for a $4 penalty?

Also, the phone support people at TurboTax seem so unhappy!! 

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2 Replies

Entered correct direct-debit info, but TurboTax sent someone else's bank info to the IRS

did you ask that Turbotax fees be taken out of your Federal refund or did you get a refund advance?   then a third-party bank's routing and a/c # are used to receive the refund. the fees/advance are taken out and the third-party bank then uses the routing and a/c # you provided to make a direct deposit of the balance.  can't say what caused your problem but so many other taxpayers do what you do there would be thousands of threads about this issue. yours is the first one I've seen about direct debit.  there have been many threads about direct deposit issues because 1) taxpayers don't realize that a third-party bank is used to separate the fees/advance from the rest of the refund 2) many taxpayers have messed up on reporting economic impact payment 3 or the advanced child tax credit thy got 

 

Entered correct direct-debit info, but TurboTax sent someone else's bank info to the IRS

Thanks. No, I didn't get an advance, and I used the free version so there were no TurboTax fees.

 

Also, the IRS confirms that they sent my entire refund to a personal checking account of a person in another state, because they used the bank account that TurboTax put on my return, rather than the bank account that I gave TurboTax.

 

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