A tax return filed with the wrong direct deposit information generally does not need to be amended if the banking information was entered incorrectly. (It will reject if it is filed amended if nothing in the body of the return has changed.) If the bank rejects the direct deposit, the refund is typically returned to the IRS and issued by paper check. The IRS issued paper check will be mailed to the taxpayer's address indicated on the return.
If the taxpayer's address has changed or if the direct deposit was accepted by the wrong financial institution, the taxpayer must take extra steps to recover their refund.
Change of address
If the taxpayer's mailing address has changed, they should file a change of address Form 8822 or Form 8822-B as soon as possible to have their refund mailed to the new address.
Note that the IRS typically takes 4-6 weeks to process a change of address.
What to do if Tax Refund Direct deposit information belongs to someone else?
The financial institution may accept the tax refund if the banking information is valid for an existing account. In this situation, the taxpayer must contact the bank directly to recover their tax refund.
- If there is no resolution within two weeks of contacting the bank, the taxpayer can file Form 3911 to allow the IRS to contact the bank on the taxpayer's behalf.
Note: For a tax return that has not yet been accepted by the IRS, the taxpayer can call the IRS at 800-829-1040 immediately to ask about stopping the direct deposit.
Additional information:
About Form 8822, Change of Address
About Form 8822-B, Change of Address or Responsible Party - Business