Joe M

[Unregistered]

What do you do if a client provides an incorrect checking account number, and their refund is deposited into someone else's account?

[jainen]

Apologize profusely

Apologize profusely for not getting the number right, and offer to track down the refund for free. Then change your procedures so it never happens again. Make sure you have a photocopy of a check (such as the one they pay your fee with) in your file with a red checkmark indicating you verified it against your printout.

[Chief]

Change Procedures

After the 2004 tax season, I started requiring either a voided check or photocopy of check to keep in my records. This procedure you should put into place now.

[Jiggers]

Verifying Account

The first time I e-file with a direct deposit I require a copy of a check.

For future years I ask the client to verify the bank, routing number, and account number on my interview sheet (proformas) printed by my software.

My software prints the routing number and account number on the 8879.

I have the client verify these numbers AND initial next to the account number, explaining that if it goes to a wrong account, it is the client's loss, not mine.

If I make a stupid mistake and enter the wrong account number and the client initials the account number as correct, it is the client's loss, not mine. I will probably lose a client, but that's life. Hopefully, this would not happen by following the procedures above.