A tax return that was filed with the wrong direct deposit information does not need to be amended. (It will reject if it is filed amended if nothing in the body of the return has changed.) Once the funds are rejected by the financial institution they revert back to the IRS who will issue a paper check and mail it 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
Note that the IRS typically takes 4-6 weeks to process a change of address.
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.