Once your return has been accepted (or mailed), it's too late to change
your bank account in TurboTax for direct deposit. However,
the IRS provides the following remedies:
- If the return hasn't already
posted to their system, you can ask the IRS to stop the direct deposit.
You may call them toll-free at 800-829-1040, M - F, 7 a.m. - 7 p.m.
- 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.
- If you have contacted the
financial institution and two weeks have passed with no results, 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.
[edited 1/26/17]
