Direct Deposit of client's refund?

[gkaiseril]

Question:

Working single mom does not have a bank account. Can she have the IRS direct deposit her refund in to her single boyfriend's bank account?


Other Info:

This unmarried couple both live and raise their children together. Boyfriend is trustworthy

I am not set up for RALs.

Again, thanks very much. You guys have been wonderful.

Not a good idea for all sorts or reasons.

Bank may reject deposit if TP name not on account.
Bank may reject deposit if both names for bank account not on deposit.

IRS will make only one direct deposit to a given bank account. So if the bank accepts the deposit, the boyfriend will not be able to use direct deposit with that account.

How trustworthy is the boyfriend really? Past performance is no indication of future performance.

A name mismatch between the deposit and the bank account owner may raise concerns about a fraudulent deposit.

TP could have a problem is deposit goes astray.

[Bonnie]

Oh wasn't saying I do this, but I know for a fact that it is done.

[Roberts]

I'm sure it's done all the time, I wouldn't knowingly do it or recommend it. JMO. If the boyfriend steals the money, it's going to come back on you.

In reality though, I don't check to make sure my clients name is on the account when I input direct deposit instructions. Often times they email me or give me the numbers over the phone. Even if I had a check in hand, doesn't mean it isn't a falsely made up check. Plus a lot of checks don't have the names of the account holders listed. Since you can order checks from 3rd parties, just because the check says there are dual names on the account doesn't mean there is in fact dual names. Heck, I could print off a Quickbook check right now with any names I want on it....

[ChEAr$]

Another thing to remember is that an owner(s) of an account may also have other signatories authorized. Just because someone is authorized to sign checks will not allow a direct deposit of that person's refund to the owner's account.