Can a taxpayer use someone else's checking account to direct deposit their refund? The Tax Book states refund must be deposited into a qualified acct in taxpayers name. However taxpayer said that she knew someone who had their refund deposited into someone else's acct. just wanted to make sure there were no exceptions.
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up to the bank
I think you will find that it us up to the receiving bank. Some will not deposit a joint check into an account with only one name on it, some will.
IRS only has an account number, they have no idea who owns the account.
Would I allow a client to do that if I knew? no way.AJ, EA -
Well, the F-1040 instructions say, on page 69, "Do not request a deposit of any part of your refund to an account that is not in your name, such as your tax preparer's account." What's interesting, though, is that in prior years' instructions, that warning was listed under the heading (on p.70 in the 2013 instructions) that says, "Reasons Your Direct Deposit Request May Be Rejected." The admonishment is no longer under that heading, leaving one to wonder if, as another person posted above, it's now up to the receiving bank. But how would a bank decide such things?
I guess it can't hurt to try. Worst case: The taxpayer gets a check in the mail instead ... and perhaps suffers an additional delay.Roland Slugg
"I do what I can."Comment
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I have had it happen. Usually when MFJ filers have separate bank accounts, and no joint. And I also had it happen (my error) some years ago, when I mixed up the checks and input the wrong account # on the return. The two clients had absolutely no relationship with each other. We got it straight after it had been deposited in the bank. Whew!Comment
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