Tax Refund Direct Deposit to Wrong Account

[missflo]

What is the name of your state (only U.S. law)? New Mexico
I recently filed my 2010 taxes and requested a direct deposit of my refund, however, I made an error and listed my bank account number incorrectly.
Due to this mistake, my refund was deposited to the the correct bank but to an account which was not mine. I was told by the IRS to contact bank but my bank tells me that nothing can be done. I find this hard to believe. Does anyone know what can be done? I can't believe that there is nothing I can do and that someone else has received my tax refund but I have no recourse!

 

[Antigone*]

What is the name of your state (only U.S. law)? New Mexico
I recently filed my 2010 taxes and requested a direct deposit of my refund, however, I made an error and listed my bank account number incorrectly.
Due to this mistake, my refund was deposited to the the correct bank but to an account which was not mine. I was told by the IRS to contact bank but my bank tells me that nothing can be done. I find this hard to believe. Does anyone know what can be done? I can't believe that there is nothing I can do and that someone else has received my tax refund but I have no recourse!

The bank can't pull funds from another customer's account on your word. The request for correction has to come from the IRS

 

[CourtClerk]

What is the name of your state (only U.S. law)? New Mexico
I recently filed my 2010 taxes and requested a direct deposit of my refund, however, I made an error and listed my bank account number incorrectly.
Due to this mistake, my refund was deposited to the the correct bank but to an account which was not mine. I was told by the IRS to contact bank but my bank tells me that nothing can be done. I find this hard to believe. Does anyone know what can be done? I can't believe that there is nothing I can do and that someone else has received my tax refund but I have no recourse!

You'll have to find out who the money went to and sue the people in court.

 

[Antigone*]

You'll have to find out who the money went to and sue the people in court.

Sorry CC but no way that is going to happen. Most likely the funds are sitting in a suspense account at the bank. The IRS has to initiate a correction and recall the funds.

 

[CourtClerk]

Sorry CC but no way that is going to happen.

If issues a subpoena, under what authority would the bank ignore it?

 

[Antigone*]

If issues a subpoena, under what authority would the bank ignore it?

There is no proof the money is in a customer's account. He gave the IRS a bum number. It could be a valid account number or it could be nothing. It is most likely sitting in a suspense account because the bank does not know what to do with it. the bank will leave it there until the get instructions from the IRS.

There is no need for law suits, lawyers or subpoenas. The OP needs to take whatever steps the IRS has for people who do not receive their returns.

 

[OHRoadwarrior]

AS stated the IRS can fix.

 

[LdiJ]

What is the name of your state (only U.S. law)? New Mexico
I recently filed my 2010 taxes and requested a direct deposit of my refund, however, I made an error and listed my bank account number incorrectly.
Due to this mistake, my refund was deposited to the the correct bank but to an account which was not mine. I was told by the IRS to contact bank but my bank tells me that nothing can be done. I find this hard to believe. Does anyone know what can be done? I can't believe that there is nothing I can do and that someone else has received my tax refund but I have no recourse!

Contact the IRS again and tell them that you never received your refund and that they need to correct the problem. If you get an agent that will not cooperate, ask to speak to a supervisor. Try calling fairly early in the morning so that you are catching an agent at the beginning of the day instead of the end of the day.

However, your bank really should have bounced it back if the name and account number didn't match.

 

[missflo]

I had contacted the IRS and was told to contact my bank. I will,however, call back the IRS. Maybe I just got an agent who didn't want to bother with it. Anyway, my bank told me the money was, in fact, deposited into a valid account but they can not touch the funds or give me the name of the person.
Like, I said, I guess I will get back on the phone tomorrow to the IRS. Thanks!

 

[swalsh411]

If the IRS deposited the refund into the account provided by the taxpayer then I don't see how they are in the picture anymore. They didn't make a mistake; the OP did. It seems to me that it's now between the OP, the bank, and the account holder where the funds were deposited. The funds may not even be in the account anymore.

 

[Antigone*]

If the IRS deposited the refund into the account provided by the taxpayer then I don't see how they are in the picture anymore. They didn't make a mistake; the OP did. It seems to me that it's now between the OP, the bank, and the account holder where the funds were deposited. The funds may not even be in the account anymore.

swalsh, because this deposited originated as an ACH deposit the only way it can be traced is to start at the beginning. The OP has no way to track it down other than through the IRS.

It is true that if the funds went into an account and that account holder spent the money we are looking at a horse of a different color and I have no clue what should happen next. The fact that the OP provided the wrong account number will put the liability on him. AND there is no way in haedes the bank will give him the information of the account owner who got lucky.

We can only hope the money is sitting in a suspense account at the bank.

 

[LdiJ]

swalsh, because this deposited originated as an ACH deposit the only way it can be traced is to start at the beginning. The OP has no way to track it down other than through the IRS.

It is true that if the funds went into an account and that account holder spent the money we are looking at a horse of a different color and I have no clue what should happen next. The fact that the OP provided the wrong account number will put the liability on him. AND there is no way in haedes the bank will give him the information of the account owner who got lucky.

We can only hope the money is sitting in a suspense account at the bank.

That isn't entirely accurate. It is against federal law to spend a tax refund that doesn't actually belong to you, whether that happens via a check or a direct deposit. Therefore the person who received the money that they were not entitled to receive (if that happened) could be in a considerable amount of legal trouble...from the IRS.

The bank also should have rejected the direct deposit if the name, social and account number didn't match, so there is some liability for the bank as well. Its also a crime to spend money that doesn't belong to you even if it was accidentally deposited into your account. There is case law to back that up.

However, you are correct that it all goes back to the IRS and only the IRS can initiate the trace that is necessary to both find where the funds went and to retrieve them.

 

[swalsh411]

The bank also should have rejected the direct deposit if the name, social and account number didn't match, so there is some liability for the bank as well.

I guauntee you the IRS does not include the taxpayer(s) SSN on ACH refunds. Furthermore, people have their returns deposited into other people's accounts all the time for a variety of reasons.

 

[FlyingRon]

I guauntee you the IRS does not include the taxpayer(s) SSN on ACH refunds. Furthermore, people have their returns deposited into other people's accounts all the time for a variety of reasons.

Or their own. You can have joint account holders and only one SSN is typically listed.