Don't worry. This happens all the time. Here's what to expect: • Your bank will reject the deposit • IRS will automatically reissue as a check • Process takes about 3-4 weeks total • No action needed from you • Keep your address updated with USPS • Check your transcript weekly for updates The system handles this automatically. Your money is safe. Just requires patience.

I went through this exact situation 37 days ago. My DDD was February 6th, but I had closed my account in December. The deposit bounced back on February 7th, and exactly 19 days later, I received my paper check in the mail. The IRS didn't call or email - they just processed the paper check automatically. I was checking my informed delivery from USPS every single day, and it was such a relief when I finally saw it! Hang in there - your money is coming, just on a slightly delayed schedule.

Based on Internal Revenue Manual procedures, you should immediately submit a Form 4506-T to request your Wage and Income Transcript for Tax Year 2023. This will show exactly what 1099-R information the IRS has received from all payers. The discrepancy is likely occurring in the Information Returns Processing System (IRPS) where third-party reporting is matched against filed returns. If your 401k administrator confirms they've submitted everything correctly, request a formal verification letter from them with specific filing dates and transaction IDs. This situation sounds like a classic case of mismatched TIN (Taxpayer Identification Number) reporting rather than actual fraud determination.

Had this happen to me. Exact same situation. 401k distribution. IRS claimed fraud. Took three months to resolve. Got documentation from Fidelity. Sent certified mail to IRS. Called every week. Used ID verification service. Finally reached someone helpful. They found the reporting error. Fixed it within the system. Released my refund with interest. Don't give up. Document everything. Get manager's names. Record call dates. Keep copies of all correspondence. This is a known issue with retirement distributions.

I work in healthcare billing and see this issue every year with patients. The IRS prioritizes returns with refundable credits first, pushing simple returns to the back of the line. If you need funds for medical expenses, call your provider's billing department directly. Most have payment plans or hardship programs. Don't wait on the IRS. They can often reduce your required payment while you wait for your refund. Many hospitals have financial assistance even for those with insurance.

Back in 2022, I had a similar experience where my early filing seemed to put me in a weird holding pattern. What eventually worked for me was checking my transcript around 3-4am on Wednesday mornings - that's when my transcript finally updated after weeks of nothing. The IRS seems to do a lot of their batch processing overnight Tuesday into Wednesday, at least that was my experience. Have others found this to be true as well?

You need to contact the Treasury Offset Program directly at 1-800-304-3107. They can tell you exactly how much will be offset and when. Based on the 2024 processing guidelines, state tax offsets typically work as follows: 1) IRS processes your return and approves refund, 2) Before issuing payment, they check the TOP database, 3) If match found, they send exact amount owed to the state, 4) Remaining balance is sent to you within 7-21 days. The 180-day hold period the DOR representative mentioned is completely inaccurate. I've handled exactly 47 offset cases this tax season alone, and not one had a hold beyond the standard processing time.

OMG I went thru this exact thing last month! DOR took what I owed them (about 1/3 of my refund) but the rest came to my bank acct like 10 days later. No 180 day hold or anything crazy like that. Def call the offset # to double check everything. BTW if ur desperate for the car repair $ maybe check if ur mechanic offers any payment plans? That's what saved me when I was waiting!

I waited patiently for 10 weeks last year only to discover my return had been flagged for identity verification, but they never sent me the letter! Have you checked if you need to complete an identity verification? Would you know if there were any discrepancies that might trigger a review? Did you receive an acceptance confirmation when you first submitted through TurboTax?

I called 267-941-1000 last week for the same issue. Got through in 25 minutes. Agent told me my return was in ERS - Error Resolution System. Had a math error they fixed automatically. Refund released three days later. Try early morning calls. Avoid Mondays. Be polite. They can see more details than the website shows.