What steps should I take if I mistakenly entered the wrong routing or account number for my refund's direct deposit?

Correcting Incorrect Routing or Account Number for IRS Refund Direct Deposit

Steps to Take Before Filing Your Tax Return

1. Verify Account Information:

  - Before submitting your tax return, double-check your account and routing numbers with your financial institution.

  - Ensure the numbers entered on your return are accurate and the account is in your name, as per the IRS guidelines on [Refund Inquiries 18].

If You Discover an Error After Filing

2. If the Return Has Not Posted:

  - If the IRS has not yet processed your return, you can request to stop the direct deposit by calling the IRS at 800-829-1040.

3. Incorrect Routing or Account Number:

  - If you omitted a digit and the number fails the IRS's validation check, the IRS will send a paper check for the entire refund.

  - If the incorrect number passes validation but the financial institution rejects the deposit, the IRS will issue a paper check once the deposit is returned.

  - If the deposit goes into someone else's account, you must work directly with the financial institution to recover your funds.

4. Refund Anticipation Loan (RAL) or Refund Anticipation Check (RAC):

  - If you requested a RAL or RAC, contact the financial institution where the refund was deposited for resolution.

5. Initiating a Trace:

  - If the financial institution does not return the funds after you've contacted them and two weeks have passed, file [Form 3911, Taxpayer Statement Regarding Refund] to initiate a trace.

  - Banks have up to 90 days to respond to the IRS's request for information, but resolution may take up to 120 days.

6. Unrecoverable Funds:

  - If the bank refuses to return the funds and they are not available, the IRS cannot compel the bank to do so. The matter may become a civil issue between you and the financial institution or the account owner.

Preventing Future Issues

7. Direct Deposit Guidelines:

  - Use direct deposit for a faster and more secure refund delivery.

  - You can split your refund into up to three different accounts using [Form 8888, Allocation of Refund] (Including Savings Bond Purchases).

  - Ensure the routing number is nine digits and the account number is up to 17 characters, as specified on [Form 8050], Direct Deposit of Corporate Tax Refund.

8. For Corporate Tax Refunds:

  - Corporations should use [Form 8050] to request direct deposit of their tax refund and verify the correct routing and account numbers with their financial institution.

By following these steps and guidelines, you can correct an incorrect routing or account number for an IRS refund direct deposit and take measures to prevent similar issues in the future.

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Sources:

Refund Inquiries 18 | Internal Revenue Service 2024-08-03

Refund inquiries | Internal Revenue Service 2024-08-04

Frequently asked questions about splitting federal income tax refunds 2024-08-01

IRS procedures | Internal Revenue Service 2024-07-31

Provide Accurate Routing and Account Numbers on Form 8038-CP to Avoid delayed payments 2024-07-31

Form 8888 (Rev. November 2022) 2024-08-03

Online account for individuals – frequently asked questions 2024-08-04

Form 8050 (Rev. November 2016) 2024-07-30

2008 Form 8888 | Internal Revenue Service 2024-07-28