Direct Deposit to Wrong Bank Account

[ETax847]

A client had his tax refund directly deposited into an incorrect bank account.  Has anyone ever had this happen with their client and how did you go about fixing this?

 

Thanks

Edited May 19, 2015 by ETax847

[Jack from Ohio]

Nothing to fix.  The bank should refuse the deposit.  The IRS will then sit on the refund 2-4 weeks and mail the taxpayer a check.

[ETax847]

The bank should refuse the deposit, but it already accepted it into the incorrect account.  Has anyone ever had this happen?

[Pacun]

I would try to call the bank and ask if the deposit was accepted. The bank doesn't have to refuse the deposit by law. So, your client needs to ask the bank or at least inform that a wrong deposit went to one his clients.

One time my brother gave me his ex-girl friend's account number by mistake. We sent his taxes and about 30 days later he asked me to check the status of his deposit. I told to go to his bank because the money was deposited. He went to his bank and he was told that no deposit was made. He called again and I checked I gave him the account number and he said that's not my account number. I told him "this bank seems to be Wells fargo". He said, I never had that bank. I said that's the account you gave me. Then he realized he gave me his ex's account. He called her and got his money.

[MDEA]

Client must go to bank with wrong account number and check and see what they did with the money.Happens a couple times a year with my clients takes about six weeks to receive the check.

[Jack from Ohio]

If the bank received the deposit into an account that did not have the taxpayer's name on it, it is a bank issue.  Good luck getting the bank to correct their mistake.

[SFA]

Last year one of my clients state refund was deposited into an incorrect account. The bank (Wells Fargo) accepted the deposit. When we discovered the problem, we called Wells Fargo and fussed with them and laid it all in their lap, even though the tax return had designated the deposit into the incorrect account.

Wells Fargo put the correct amount into my client's account. We never found out how they handled the details on their end. We didn't really care. Mission accomplished!

 

[GeneInAlabama]

A couple of months ago, my wife found a deposit of over $6,000 in her account that appeared to be a tax refund but clearly was not ours.  She called the bank and they thanked her for bringing the error to their attention.  I am just now beginning to speak to her again.

[kcjenkins]

The only good thing is that YOU can not 'fix it', the client has to deal with the bank because it's his tax return and his money.  You can help him with document copies, etc, but he/she will have to do the leg work.  That's good for you.  

[ETax847]

IRS says there is nothing they can do, and that it is a bank issue.  Bank of America says there is nothing they can do and that it is an IRS issue.  Unreal, how much of a pain this has turned into.

[Jack from Ohio]

IRS says there is nothing they can do, and that it is a bank issue.  Bank of America says there is nothing they can do and that it is an IRS issue.  Unreal, how much of a pain this has turned into.

​Did the client give you the wrong account number?

[ETax847]

Yes, I usually ask for a voided check so this would not be an issue, but due to time constraints, I had the client read me their account number.  Even though I had them read their account number twice, they misread it both times.

[Jack from Ohio]

Yes, I usually ask for a voided check so this would not be an issue, but due to time constraints, I had the client read me their account number.  Even though I had them read their account number twice, they misread it both times.

​Does the client acknowledge this?

[MsTabbyKats]

Oy....

Was this a large refund? (I know it's relative but $$75 is not $7500) There really isn't anything you can do....client has to deal with the bank.

It used to be name & ss# had to match.

I hope you have the 8879...(or e-mail consent)....so client can't claim she never saw the return. 

 

[Tax Prep by Deb]

I just recently had one of my client's who never owes nor never gets back, call me to ask what he should do as his bank, also Bank of America deposited someone's federal and California tax refunds into his account.  He called the bank and they told him it was IRS and Franchise Tax Boards problem, however I had been down this road before and the instructions given us from IRS at that time was to go to the bank and refuse the deposit.  When my client did this the bank had to send the deposits back to the agencies.  I told my client to call them back and tell them that and they said they would take care of it.

 

It's kind of freaky that your client's refund was deposited into someone else's account at Bank of American and my client received someone else's refunds, also Bank of America, and apparently during the same week.  I wonder if these two might be connected?  Was your state refund California?  

[Lion EA]

Twilight Zone.  In more ways than one.  

[SaraEA]

Bank of America = Worst Bank in America.  I pity your client because you have to call and go through 100 menus to get a real person, who tells you to call back tomorrow, and then you go through 100 menus again.  If you go to a branch and find someone to help you, they too have to call and go through 100 menus ("press one for English").  When we sold our last house the title search revealed BofA had a lien on our property, although we had never had a loan with them and carried no mortgage with anyone.  It took them weeks to release the lien, and they only did it after I pulled my last card and threatened to call the state Banking Commissioner.  This is definitely a bank problem and your client has to put it squarely in their lap.  With gov't deposits of any kind they have an obligation to check these things, but gee that might require hiring an additional employee who understands English.