What to Do If You Gave the Wrong Account Number for Your IRS Tax Return

Mistakes can happen, especially when filling out important forms like your IRS tax return. Entering the wrong account number for a refund is a common error that can delay receiving funds. Knowing the steps to take if this occurs is essential for resolving the issue efficiently.

Reporting the Error to the IRS

If you’ve provided an incorrect account number on your tax return, act quickly. Contact the IRS at 1-800-829-1040 and verify your identity with your Social Security number, filing status, and refund amount. This allows the IRS to access your records and address the issue.

Explain the mistake clearly to the IRS representative. They may ask you to complete Form 3911, “Taxpayer Statement Regarding Refund,” to initiate a trace on your refund. This form helps determine if the funds were deposited into the wrong account and starts the recovery process. Follow the representative’s instructions carefully.

If the funds have already reached an incorrect account, you may also need to contact your financial institution. Banks and credit unions have procedures for addressing such errors and may assist in recovering the funds. However, the IRS remains your primary contact for documentation and support.

Verifying Refund Status

After contacting the IRS, check your refund status using the “Where’s My Refund?” tool on their website. You’ll need your Social Security number, filing status, and refund amount to access this information.

The tool provides updates on whether your refund has been processed, is pending, or has been issued. If it shows your refund has been issued but you haven’t received it, contact the IRS to initiate a trace.

Updating Direct Deposit Info

To avoid future issues, ensure your direct deposit information is accurate before filing your next return. The IRS doesn’t allow changes to account details for the current year’s return, so double-check your information during tax preparation. Many tax software programs can help flag errors in account numbers. Using IRS e-file services, which include verification steps for bank details, can also minimize mistakes.

Keep a secure record of your banking information used for tax purposes, such as in a spreadsheet or financial planning software. If you change banks or account types during the year, update your records immediately to reflect these changes on future tax filings.

Possible Scenarios if Funds Reach a Wrong Account

If funds are sent to the wrong account, the outcome depends on the circumstances. If the account number doesn’t exist, the bank will typically reject the deposit, returning the funds to the IRS. While this often resolves the issue, it may delay your refund.

If the incorrect account number is valid, the situation becomes more complex. In such cases, contact the bank directly. Financial institutions follow the Electronic Fund Transfer Act, which outlines procedures for disputing unauthorized transactions. Work promptly with the bank and provide documentation, such as the IRS trace request, to assist in recovering the funds. Keep in mind that banks aren’t always obligated to return funds once deposited, so persistence and clear communication are crucial.

Following Up on Reissued Refund

Once the IRS processes corrections and reissues your refund, monitor its progress. Stay in contact with the IRS and your financial institution to ensure a smooth reissuance.

After submitting Form 3911, follow up periodically with the IRS to maintain progress. They may provide an estimated timeline for the reissued refund, but these are not guaranteed. Keep the refund trace number handy for any inquiries.

Notify your bank about the pending reissue and confirm your account details are accurate. This allows the bank to anticipate the deposit and verify that no issues, such as account holds, could interfere. Banks can also provide insights into typical processing times for deposits, giving you a realistic timeframe for when the funds should be available. Open communication with both the IRS and your bank is key to resolving any unexpected complications during the reissuance process.