Incorrect Bank Information for Direct Deposit Refund

Incorrect Bank Information

If a refund has incorrect bank information, such as account # or bank routing #, and the IRS has ACKNOWLEDGED that Direct Deposit return, responsive action will be taken in the re-routing of the funds as in either of the following:

1. If the refund is scheduled to be a Direct Deposit to a Tax Payers account (refund type: 2), the IRS shall then issue a paper check to the address on the return.
   
   
2.  If the refund is scheduled to be a bank product with a Direct Deposit to a Tax Payers account (refund type: 5), the bank will create a check print file, and the ERO will have to print off a check for distribution.
   
   
3.  If you have contacted the financial institution and two weeks have passed with no results, you will need to file Form 3911, Taxpayer Statement Regarding Refund, to initiate a trace. This allows the IRS to contact the bank on your behalf to attempt recovery of your refund. Banks are allowed up to 90 days from the date of the initial trace input to respond to our request for information.
   
   
4. If funds aren’t available or the bank refuses to return the funds, the IRS cannot compel the bank to do so. The case may then become a civil matter between ERO and the financial institution and/or the owner of the account into which the funds were deposited.