IRS Tax Refund Reminders

As the nation's tax season begins, the IRS expects more than four out of five tax returns will be prepared electronically.  The IRS has shared the following reminders to taxpayers in regard to direct deposited tax refunds:

  1. Refunds should only be direct deposited into accounts that are in the taxpayer's own name, their spouse's name, or both if it's a joint account.
  2. Refunds should not be direct deposited into an account in the name of a tax return preparer.
  3. Refunds can be split into as many as three separate accounts. For example, a checking, a savings, and a retirement account.


The IRS offers the following scenarios for when a taxpayer enters an incorrect routing number or account number:

  1. The taxpayer omits a digit in the account number or the routing number and the number doesn't pass the IRS's validation check. In this case, the IRS will send a paper check for the entire refund instead of a direct deposit. 
  2. The taxpayer incorrectly enters an account number or routing number and the number passes the IRS's validation check but the financial institution rejects the deposit and returns the deposit to the IRS. The IRS will issue a paper check for that portion of the refund once received.
  3. The taxpayer incorrectly enters an account number that belongs to someone else and the financial institution accepts the deposit. The taxpayer must work directly with the financial institution to recover the funds. 


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