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Level 1
posted Apr 24, 2024 10:54:19 AM

Refund was processed but bank rejected the direct deposit what now?

My refund was processed with check to be direct deposited however my bank account was closed due to fraud between time of filing and processing.  Money went to chase bank but they rejected it.  What is going to happen to my refund?

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1 Replies
Level 15
Apr 24, 2024 12:20:01 PM

f you e-filed:

Banking information for direct deposit is wrong or closed

If you entered incorrect banking information for your refund or your account closed, you can change it if your return is rejected.  If it is accepted, however, it is too late to change it.  The bank will reject the refund and send it back to the IRS.  Then the IRS will issue a paper check and mail it to the address you put on your tax return.  Expect a delay of at least a couple of weeks to receive your refund.

Here is what the IRS says about entering incorrect banking information

https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/irs-procedures/refund-inquiries/refund-inquiries-18

 

 

 

If your refund is sent back to the IRS—- make certain that the address you entered on your Form 1040 is correct.  And…open all mail, even if it looks like junk mail.