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!!
