Taxpayers refund went into wrong bank account

[Ruby]

When we filed the tax payers tax return the wrong bank account number was used, it went into some one elses account. In talking to the bank they said the IRS will handle, talk to the IRS they say the bank will handle. What now?

[BOB W]

Bank...

.. should be matching Names and the bank should make the correction.

[Uncle Sam]

Wrong Bank Account

Just wait this coming tax season - you know - Form 8888 -
Fair warning - better make sure that the correct account information is entered.
I guarantee there's going to be mass chaos.
This is why I refuse to have IRS refund money directly to taxpayer UNLESS client INSISTS it the other way.

[BOB W]

Diret Deposit

I've been doing DD since it started X amount of years ago and never had a problem. On the other hand I only take the numbers from a blank check. I discourage using savings account's because I can't see all the numbers.............

[jainen]

it will help

>>Form 8888<<

I think it will help, because you can break up large refund amounts. If the amount sent to the wrong bank account is less than $12,000 you won't need to file a gift tax return.

[WhiteOleander]

>>Form 8888<<

I think it will help, because you can break up large refund amounts. If the amount sent to the wrong bank account is less than $12,000 you won't need to file a gift tax return.

Ha Ha. I love it. Such a creative way to handle it.

[Eli]

I would call....

or have the client call the IRS and have them initiate a trace of the deposit. I've had to do this at least twice and both times it worked out just fine. It takes about 3-6 weeks, but the client eventually gets their money.

Check this out:

http://www.irs.gov/newsroom/article/0,,id=137033,00.html

Good luck!!

Eli

[Eli]

This is the form

http://www.irs.gov/pub/irs-pdf/f3911.pdf

to initiate a trace

Eli

[Snaggletooth]

&quot;Ruby&quot;

IRS has really opened the doors for chaos on this one. Keep posting, 'cause I want to be armed with as much information as I can when tax season starts.

By the way "Ruby" - don't take your love to town....

[Jiggers]

Wrong account

My software, Drake, prints the routing number and account number on the 8879. I require all clients to initial these when they are signing the 8879. I explain that if the numbers are incorrect that the loss is theirs, not mine. Suprisingly very few verify the numbers to their checks, they just initial. How many of you know your routing number and account number by memory?

[jainen]

they say

>>very few verify the numbers to their checks<<

Usually they say, "It worked last year, and it's the same account." Problem is, FDIC changed all the numbers when it (secretly) put your bank into receivership.

[MAMalody]

I've only had one of these and it was a nightmare, this was six years ago. Basically, neither the IRS or indirectly the bank is wrong. The IRS has sent the deposit per the instructions on the tax return, therefore they made no error. Since it is handled electronically, the bank only goes by the RTN and DAN and therefore they legally get in the clear so no error. The bank is usually willing to contact the acount owner to redirect the funds, but if they are gone, they are not required to do anything. In my limited experience the F3911 is worthless for this because the deposit is neither lost nor stolen. I also have the client review the numbers to ensure accuracy. Good luck.

Mike

[RLymanC]

Wrong Account

I had this happen a few years back with Bank of America.

My clients DD never showed up. They found the money in anothers account and simply transfered the deposit to the correct account. The whole thing was resolved in 2 days.

[Pookie]

wrong bank account

we always have the client verifiy and initial the numbers before transmitting. Also, if it is a wrong account the bank returns the money to the IRS and the IRS will send out a paper check in approximately 6-8 weeks. If the bank did not return the money to IRS-- WHOA!

[jainen]

a clerical error

>>the deposit is neither lost nor stolen<<

Although neither the IRS nor the bank is at fault, if the money is taken by the wrong account owner it IS a theft. The wrong person is not entitled to anything put into his or her account just because of a clerical error.