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Illegal direct deposit of income tax refund when separated

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frabog

Junior Member
What is the name of your state? North Carolina

A friend of mine and her husband separated in April. He had a CPA friend of his electronically file joint tax returns for them after they separated and without her approval or knowledge had the refunds direct deposited into his personal bank account. She never even saw the final returns before filing. He was supposed to split the refunds with her and did not tell her they were deposited into his account. He then refused to give her half when she learned of the deposits by calling the IRS and NCDOR. She took him to Small Claims Court which is what the IRS told her to do, and her husband told the judge she was just trying to get more money out of him. He told the judge they owed taxes and he kept the money to pay taxes. The taxes he was referring to were actually for an IRA he was either planning to or had already cashed in for 2005 which he had withheld information on during their separation agreement. The judge ruled in his favor. Is this legal? What recourse does she have? It really makes you wonder about the legal system here.
 


Snipes5

Senior Member
Wrong forum. This isn't a tax issue, this is a small-claims issue. She may have recourse at the bank, since the Bank is not supposed to accept a "joint" refund for deposit to an individual account.

Snipes
 

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