Per the IRS website, if you have an error related to your direct deposit and the deposit is returned, the IRS will issue a check.
What should you do if your financial institution rejects your direct deposit refund? The IRS assumes no responsibility for tax preparer or taxpayer error. Some financial institutions accept direct deposits for some types of accounts, but not others. Contact your financial institution to ensure they will accept your direct deposit and verify your account and routing number.
- Verify your account and routing numbers with your financial institution and double check the accuracy of the numbers you enter on your return prior to signing and submitting it. You should not request a deposit of your refund into an account that's not in your own name.
- If the return hasn't already posted to our system, you can ask us to stop the direct deposit. You may call us 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 but it may take up to 120 days for resolution.
- 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.
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