Deposted into wrong acct.

[AZ-Tax]

A new client brought in their 2007 tax return and showed me the incorrect direct deposit info on their tax return. The tax preparer who prepared their tax return cannot be found and the IRS and Taxpayers advocacy will not help them. This according to the taxpayer. They know which bank it is so I strongly suggested they go to that bank and show them their tax return with the acct info. The bank shoud be able to tell who the acct belongs to even if the names are the same, the SS# will not be the same. The taxpayer does have a rather common last name but I still cannot understand how this could happen. This has made me become a little leary of direct deposits.

Has any client you know experience this and if so did your client get it resovled and if so how did they go about it?

[MAMalody]

If this account actually exsists, the IRS and bank both did as they were directed to do so, and, as such, may have no liability. The bank would appear to be further out on the hook, assuming that the IRS also transmits the SSN, which I am not sure about. The bank will not tell them who received the money, but they may verify the account actually exists and sometimes will admit it was deposited into that account. They may also contact that individual and alert them to the error, but, my experience was they could only ask for the money back, they could not arbitrarily (sp) take it back. Good luck.

[LawrenceGR]

I have it happen

A few years ago this happen to one of my clients(My fault). I went to the credit union with the amount of the deposit, the date of the deposit and the incorrect account number and they took care of it. I did give my client a large discount the next year.

[Burke]

I have had it happen too, and it was resolved through the bank. Although the IRS told me (local office) that the TP could file a claim for the refund with the IRS and it would go through "channels" indicating it would take quite some time to resolve it. The bank was a much easier option. The smaller the bank, the easier it is. And whom you may know there. On EFT's, they do not transmit the SSN or name. Just the account number. I have since inserted a BIG flyer 8 1/2 X 11 on GREEN paper in every DD tax return to alert the TP to verify the bank acct number before sending in. AND I tell them about it when they come in to pick up. Often I make them do it right then.