Generally, if the financial institution recovers the funds and returns them to the IRS, the IRS will send a paper refund check to your last known address on file with the IRS.
Since your financial institution claims they did not receive your stimulus payment, you will need to file Form 3911 (Taxpayer Statement Regarding Refund) to initiate a trace. This allows the IRS to contact the bank on your behalf to attempt recovery of your refund. Banks are allowed up to 90 days from the date of the initial trace input to respond to our request for information.
If funds aren't available or the bank refuses to return the funds, the IRS cannot compel the bank to do so. The case may then become a civil matter between you and the financial institution and/or the owner of the account into which the funds were deposited.
Please see the link below from the IRS website for additional information including the link to Form 3911.
Solutions for missing stimulus payment
@Pf1999-1421
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