Bad account number for Dir Deposit

[dsi]

I tried searching but came up with nothing. Client gave me a wrong account number for his direct deposit. Return was e-filed yesterday. How do I resolve this problem?

[erchess]

No Resolution Is Possible

With any luck the bank will refuse the DD in which case about six weeks later your client will get a check in the mail at the address shown on the return.

If you are out of luck the bank will accept the DD in which case your client will not get his refund unless and until the IRS recovers the money from whoever got it. Perhaps someone else can tell us how to initiate this process. I believe that July of this year would be about the earliest your client could conceivably get his money.

Going forward it would be a good idea if you would get a voided check (not a deposit ticket or anything else but a voided check) showing the rtn and dan each time you do a direct deposit or direct debit. It would even be a good idea for you to phone the bank to verify the rtn if the check is drawn on a Credit Union.

Sorry to paint such a bleak picture but the sooner you know the facts the sooner you and your client can begin to work on solving this long term problem.

[dustoffgirl]

Agreed

I agree with erchess this has happened to one of my clients last year but it was becaues he closed the account before the direct deposit date. Your client will just have to pay the waiting game. So be prepared to take an unnessary tounge lashing when the client come in to blame you for him not giving you the correct account number. Also make sure to charge him for the time you spent trying to find the answer its always nice to add a little salt to the wound.

[Burke]

If the account number was wrong, BUT the routing number (bank) was right, then you MIGHT have him contact the bank to see if that account number actually is valid, but for someone else. They don't have to tell him who it is. He can take his tax return along to document what happened. Depends on the bank and who he knows there as to what help he might get. If it was a valid acct #, it very likely went into that person's account. My experience is that is what happens. The bank does not catch it, as it is all electronic and the names are not matched. IF the acct # was invalid for anyone, then the EFT bounces back to the IRS and it is forwarded to the check-writing dept for the next cycle of refunds to be drawn. If you determine it did go into someone else's account, the only "official" recourse is to go down to the IRS office and file a claim for refund. It will take quite a while for this to be resolved.

[tilt53]

I keep a list of all the banks that my clients use and their routing numbers. Every year before season starts I verify each routing number and list the date I updated it. Sometimes banks change names (nah, we've never seen that happen) so it really helps.

http://www.fedwiredirectory.frb.org/search_ACH.cfm

[zeros]

Direct Deposit to Girlfriend's Account

I had this request today. I said that it can't be done but in reading the replies, it sounds like it would work. Probably not a good idea but any response to this?

[ChEAr$]

No~

I had this request today. I said that it can't be done but in reading the replies, it sounds like it would work. Probably not a good idea but any response to this?

It won't work. A direct deposit may ONLy be made into an account of the taxpayer.
NOT to a church; not to a furniture store, much less a car lot!

[BP.]

I keep a list of all the banks that my clients use and their routing numbers. Every year before season starts I verify each routing number and list the date I updated it. Sometimes banks change names (nah, we've never seen that happen) so it really helps.

http://www.fedwiredirectory.frb.org/search_ACH.cfm

Thanks for the link! I try to keep a list too, but with so much bank reorganization, it was getting chaotic. I found this link:

http://www.routingnumbers.org/

[taxea]

tilt53 has it right. You can never assume that the same account will be used. Verify it and you don't have this problem happening. taxea

[thomtax]

I do everything I can to make sure that nothing that is my fault causes the deposit to go wrong, so I always look at a check. I've already had one this year where the client had done nothing to change their account, but the bank, owned by a holding company, had changed its routing number. It probably would have gone through with the old number, but I just don't like taking the chance.

Maybe I'm just too cautious, but that's the way I am.

LT

[Burke]

It won't work. A direct deposit may ONLy be made into an account of the taxpayer.
NOT to a church; not to a furniture store, much less a car lot!

It will "work", but is not supposed to be done and I would not touch that with a ten-foot pole.