TBTax

[TBTax]

Two scenarios:

Client had daughter's refund direct depositied to his account by prior agreement (she has no accounts). His bank does not accept this type of deposit and apparently refused the electronic submission. IRS shows the money deposited, but the bank shows absolutely no record of the transaction. I called the IRS and they definitely show it being sent, with no record of it being sent back.....yet. Bank was contacted again, and still nothing. This whole process started about two and a half weeks ago and is still ongoing.

Another client's direct deposit has not shown up as scheduled two weeks after the first client's situation. Account numbers, routing numbers, etc. are good, but still nothing. Since we're four days from the scheduled posting, it's too early to call the IRS (I can do that tomorrow), but again, their website shows it deposited last Friday (2/16/2007). I know some banks like to float the money sometimes, but this is a little excessive if this is the case here.

Questions; Has anyone had trouble like this this year? If so, any ideas on how to go about resolving the issues?

Thanks in advance for any input you may have.

[Snaggletooth]

Asking for Trouble

No idea what's happened, but you left the door open for trouble when arranging for a direct deposit for someone who doesn't have a bank account.

There is a matching program which matches the name on the tax return to the name on the account. A good program because it cuts down on fraud. This matching program might be what's causing the problem.

I had one case where a young fella had no bank account, and then when he found out it was going to slow down his refund, his dad went out and started him an account with $100. This probably would have worked in your situation instead of having the refund sent to daddy's account.

[S T]

Bank Account

If t/p is not on the bank account that they would like the direct deposit sent to, then they are "toggled" to receive a paper check.

For years I have encountered the problems with "couples" not married that wanted direct deposit into a joint account, but cautioned the t/p that the direct deposit could possibly be returned to IRS.

So I just make it a standard practice, married joint on a bank account, okay for direct deposit, single account in t/p name okay for direct deposit. Any other, I advise against it, wait for the paper check.

Sandy

[TBTax]

TBTax

Thanks for the input. Lessons learned.......

[taxea]

TBTax

At this point I would submit the IRS form to locate the refund taxea

[Bonnie]

[QUOTE=TBTax;31509]Two scenarios:

Client had daughter's refund direct depositied to his account by prior agreement (she has no accounts). His bank does not accept this type of deposit and apparently refused the electronic submission.

I had a similar situation with mother who had no account and wanted to direct deposit her refund into daughter's account. I called IRS to check and they said they would send it but it was up to the bank to accept it and that some will and some won't. I had daughter call her bank and they said "No" so I just set it up for mailed check.

Bonnie

[Black Bart]

Late refund

There's still a fair chance that a paper check will show up in the mail -- but it's just a slow process. As you know, the IRS e-file refund cycle chart lists "direct deposit sent" on, for example, Feb. 16th, but the paper check for that would be mailed a week later (Feb. 23). Trouble is, IRS' mailing routine is slow too. I had a client's check rejected from e-file and IRS converted it to a paper check and mailed it. The client was quite upset because she did not receive that check for another full five days after the date on which it was supposed to have been mailed.

So anyway, it may show up in the mail yet. I wouldn't trust the IRS website that much -- maybe it had just not posted the bank's rejection of it yet. I'd rather just talk to their e-file help-desk clerks in person -- they're usually pretty good at problem-solving.