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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.
According to IRM 21.4.1.5.7, when direct deposits are returned by financial institutions, the IRS is required to reissue payment by paper check within 21 calendar days. The refund will be sent to the address of record at the time of return. If you've moved since filing, I recommend filing Form 8822 (Change of Address) immediately to ensure proper delivery.
I believe this is generally correct, although in some cases the IRS may potentially attempt to contact you first, especially if there appears to be a pattern of returned deposits or if the amount is particularly large. It's also possible, though somewhat unlikely, that processing delays might extend this timeline beyond the standard period, particularly during peak tax season.
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.
Oh my goodness, I just went through this whole process last month! I was so stressed about it! š« I verified in person on March 3rd and got my letter about a week later. The letter was basically just confirming that my identity had been verified successfully. I didn't need to do anything with it, but I kept it for my records just in case. My return started processing about 10 days after my in-person visit, and I could see the updates on my transcript before I even received the letter. I'd recommend checking your transcript every few days to see if there's movement!
I remember going through this last year when I had to verify my identity. The in-person verification is already recorded in their system, but I found that having the letter helped when I had to call about a different issue later. The IRS agent I spoke with actually asked for the letter reference number even though I'd verified in person. From my experience, keep both records - the fact that you verified in person (date and location) and the letter when it arrives. Better to have too much documentation than not enough when dealing with the IRS!
According to the IRS2Go app and the official IRS processing timeline (https://www.irs.gov/refunds), most electronic returns should be processed within 21 days. However, the IRS Operations page shows they're currently working through a significant backlog. Your son's return might be caught in what they call the "Error Resolution System" which doesn't necessarily mean there's an error - just that it requires manual review.
My return was stuck. No updates. Filed February 10th. Called March 15th. Got simple explanation. Return flagged for review. No letter sent yet. Issue resolved during call. Refund received March 22nd. Total processing time: 40 days. No action needed from me.
Paper returns received on February 19th, 2024 are currently running about 6-8 weeks for initial processing. Deceased taxpayer returns typically add another 2-3 weeks to that timeline. March 15th is when they usually start the first batch of manual reviews for these types of returns. April 30th is when most February-filed deceased returns complete processing. June 1st is typically when refunds are issued if no issues are found. This is all normal and expected.
I've been through this twice before, and yes, WMR does update for deceased taxpayer returns. However, in my previous experiences, I noticed it takes about twice as long as regular returns. Last time I filed one in 2022, my regular return was processed in 3 weeks while the deceased family member's return took almost 7 weeks to show up on WMR. The system works the same way, but the timeline is extended because they have additional verification procedures.
Yara Assad
I've seen this question come up frequently over the past three filing seasons. Back in 2022, nearly everyone had to call after online verification. In 2023, they improved the system so only about 30% needed to call. This year, I've observed that fewer than 15% of filers need that secondary verification call. I'm curious - did you receive any specific message after completing the online portion? Sometimes there's a subtle indicator that additional verification is needed.
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Carlos Mendoza
ā¢This matches what I've seen too. Last year my wife had to call after online verification but this year my brother only did the online part and his refund processed without issues.
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Olivia Clark
I verified online only on February 14th and got my refund March 8th. No phone call needed! The IRS system actually works sometimes... I know, shocking revelation, right? š Just make sure you completed ALL the steps in the online verification - there are several screens and it's easy to think you're done when you're not. The final confirmation page should explicitly state whether your verification is complete or if additional steps are needed.
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