I got the same message and I'm furious that this information was not explained while filing.
As far as I can tell, this is a brand new issue. I got my refund last year direct-deposited to my paypal account. I am pretty certain that when a deposit fails, a paper check is issued and then mailed. No one on TurboTax can help because the refund has already been issued (although, they should at least be able to answer the question).
I've called the IRS helpline, too, and have been through every single menu option to no avail. I'm on hold with a tax specialist, now. If I get any more reliable information, I'll come back here and comment, again. In the meantime, expect a paper check.
