Refused IRS Direct Deposit

dmilheim
  |     |   1 posts since 2017

I am a local tax accountant and have been notified of an IRS check received instead of the indicated direct deposit. The IRS said that your bank refused it. Why? The account number and routing number were correct.



Answers
Ally6770
  |     |   4,292 posts since 2010
I think that the IRS would be able to answer that for you more that DA readers. If you cannot connect to the correct person, or their tax lawyers or advocates I would contact your representative.
I rarely agree with what my rep votes on in congress but his office staff is very helpful.
I would think that a certified tax accountant would know the steps to take.Has your client called his bank to ask why they refused his deposit? 
MidAtlantic
  |     |   142 posts since 2012
I'm not sure how you expect us to guess the answer but maybe this from the IRS website is helpful:
Providers should caution taxpayers that some financial institutions do not permit the deposit of joint individual income tax refunds into individual accounts or into check or share draft accounts that are "payable through" another institution. Taxpayers should verify their financial institution's Direct Deposit policy before they elect the Direct Deposit option. The IRS is not responsible if the financial institution refuses Direct Deposit for this reason.


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