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If your refund does get sent to a closed account, the exact timeline is: the financial institution has exactly 1 business day to return the funds to the IRS, then the IRS takes approximately 14-21 days to process the returned payment, followed by 5-7 days to issue a paper check, and finally USPS delivery takes 5-7 days depending on your location. In total, you're looking at 25-36 days from the failed direct deposit attempt until you receive your paper check. I went through this in 2023 and my check arrived exactly 32 days after the failed direct deposit date.
Something that hasn't been mentioned yet is that according to Internal Revenue Code ยง6402, the IRS is only required to issue refunds in the manner requested on the return itself. There's no statutory requirement for them to provide a mechanism to update banking information after filing. This is why they've never developed a formal process for it. While frustrating, it's technically within their legal authority to handle it this way. The best community wisdom is to either file with the correct banking information initially or prepare for the possibility of a paper check if your banking details change after filing.
I think there might be some confusion about the process here. If someone has claimed your child without permission, it's not technically identity theft in most cases, but rather an improper dependent claim. Identity theft would be if someone used your child's SSN to create fake income. The resolution process is somewhat different, though both are handled by the IRS. You'll likely need to paper file your return and possibly go through an audit process where both parties claiming the child will need to provide documentation proving their right to claim the dependent.
Have you checked your child's credit report? If someone has your child's SSN, they might be using it for more than just taxes. How did you discover that someone else claimed your child? Did you get a rejection when trying to e-file, or did you receive a notice from the IRS?
I went through this same situation last month with TurboTax, which is like H&R Block's cousin in the tax prep family. Their refund advance also disappeared after February. As a 1099 contractor myself, I've found the advance options are much more about timing than employment type. It's similar to how retail stores put holiday items on clearance right after the holiday - these companies front-load their advance programs to the beginning of tax season. Compared to direct deposit from the IRS which takes 2-3 weeks, these advances typically only save you about 7-10 days anyway. For my business planning, I've learned to just build that IRS processing time into my Q1 cash flow projections rather than counting on the advance options.
I used H&R Block last year. Got the advance. It appears at the end. After your return is complete. Not during preparation. You must qualify. Credit check is required. Minimum refund amount applies. 1099 status doesn't matter. Timing matters most. Early season only. January to February typically. It's too late now. Consider this for next year instead. Plan accordingly.
I just went through this process. Here's exactly what happened: 1. Filed my 1040X in January 2024 2. Checked WMAR tool weekly 3. Status changed to "adjusted" after 12 weeks 4. Received paper check in mail 2 weeks later 5. Check came to address on my 1040X form So yes, it will be a paper check. Is there a specific reason you're asking? Do you need to update your address or something?
Watch your mailbox carefully. Unlike regular returns, amended returns ALWAYS come as paper checks. This is different from how they handle normal returns, and unlike state amended returns (some states do direct deposit for amendments). I've had two amended returns in the past three years, and both came as paper checks despite having direct deposit info on file. The second one actually got lost in the mail and I had to request a trace, which added another 6 weeks to the process.
I had almost this EXACT situation happen with Venmo last year! Someone hacked my account, tried to transfer about $3,800, it got flagged, account closed... and then boom, a 1099-K shows up in January. I freaked out just like you're doing now. What worked for me: I filed my taxes normally but included a statement explaining the situation along with proof that Venmo was investigating. I also included Form 8275 (Disclosure Statement). About 3 months later, Venmo finally issued a corrected 1099-K showing $0. The IRS never questioned it, and I didn't have to pay taxes on money I never received.
Did you have to file an amended return once you received the corrected 1099-K? Or was the statement with your original return sufficient?
8d
On March 15, 2023, I had a similar situation with Square. The IRS agent I spoke with specifically advised against filing an amended return in this scenario. As long as your original return correctly explained the situation and you didn't pay tax on the incorrect amount, there's no need to amend when you receive the corrected form later. Just keep the corrected 1099-K with your tax records for that year in case of future questions.
7d
Here's a different approach that might save you some headache: โข Request a filing extension using Form 4868 - this gives you until October 15 to file โข Continue pushing Cash App to resolve their investigation and issue a corrected 1099-K โข If resolved before October, file normally with the corrected form โข If still unresolved by October, file with one of the adjustment methods others have suggested This approach gives Cash App more time to fix their mistake before you have to deal with it on your tax return. Just remember that an extension to file is NOT an extension to pay, so estimate any taxes you legitimately owe and pay by April 15.
FYI - TAS doesn't take all cases. They're super backed up rn. For amended returns, they usually only help if: 1. You've got legit financial hardship (eviction, utilities shutoff, etc) 2. It's been WAY beyond normal processing time (20+ wks for 1040X) 3. You've tried multiple times to resolve thru normal channels Local offices are better than natl hotline. Google "TAS" + your city. Bring docs showing hardship when you contact them. GL!
I was in almost the exact same boat last month (though I guess my situation was slightly less complicated). Called the TAS number (877-777-4778) every day for a week at exactly 7:00 AM Eastern when they open. Finally got through on Thursday, explained my situation, and the advocate was actually pretty helpful! She created a case file and contacted the specific department handling my amended return. Got a resolution within 10 days after that. The secret seems to be calling right when they open - who would have thought government offices actually answer phones at opening time? ๐
OMG I was literally OBSESSED with that PATH message last year! ๐ซ I checked WMR like 20 times a day! The PATH message showed up on February 15th and my transcript showed N/A for WEEKS. I was freaking out because I needed that money for my car payment. Finally on March 22nd my transcript updated with a 846 code and I got my refund on March 27th. The whole time WMR just showed that same PATH message. So frustrating! The technical explanation is that your return is in the processing queue but not necessarily finished being processed.
Did you have any codes like 570 or 971 during that waiting period? I'm trying to figure out if my situation is normal or if I should be worried.
7d
Thank you for sharing this! Makes me feel better knowing I'm not alone in this frustrating waiting game.
7d
PATH message isn't final. Just means you claimed credits. Processing still happening. Could be days. Could be weeks. Transcript more accurate than WMR. Check for 846 code. That's what matters. Forum's quiet because IRS processing faster this year for most people. Less drama. Less posts.
This is normal behavior. Different IRS systems. Different update schedules. Acceptance happens first. WMR updates later. Try checking tax transcripts instead. More reliable. Usually updates faster. Don't worry unless it's been 7+ days. Peak filing season causes delays.
This happened to me earlier this tax season and I completely freaked out! I filed on February 2nd and my software (FreeTaxUSA) immediately showed 'accepted' but WMR showed nothing for almost a week. I was convinced my return had disappeared into some IRS black hole. Called the IRS every day but couldn't get through. Finally on day 6, WMR suddenly updated with the first bar. Got my refund about 2 weeks after that. The anxiety was awful though - I kept imagining I'd have to refile or that there was some huge problem.
Thank you for sharing this! It's really reassuring to hear others had the same experience. Would you say it's pretty much guaranteed that WMR will eventually update if the tax software shows accepted? I'm on day 4 of waiting and getting nervous...
7d
What was your processing time from when WMR finally showed the first bar until deposit? Did you have any additional verification steps or identity confirmation requirements during that period?
7d
I've become quite familiar with the IRS Master File System after dealing with amended returns. What's happening is your return has been accepted into the e-file database (SCRIPS) but hasn't yet been integrated into the main IRS Master File which populates your transcript. The weekly update cycle typically occurs on Fridays, with transcript updates appearing Saturday morning around 3-6am EST. For amended returns specifically, the IRS uses Form 1040X processing codes that don't appear until manual verification is complete. I'd recommend checking your transcript this Saturday morning - that's when the TC150 posting (tax return filed) would appear if your return has moved through the queue.
This is exactly the kind of specific information I've been looking for. Thanks for sharing your knowledge!
7d
Just to be clear - are you saying we should specifically look for a TC150 code as the first sign that our return is in the system?
7d
Let me clarify something important: the "accepted" message you received on 1/30 only means your return passed the initial validation checks and was received by the IRS. It does NOT mean processing has begun. Here's what happens next: 1. Your return sits in a queue waiting for actual processing to begin 2. Once processing starts, your transcript will update with a TC150 code 3. If you amended something, it goes through additional verification steps 4. Transcripts typically update weekly, usually overnight Friday into Saturday 5. The first update will show your return was filed and initial processing status This is completely normal, especially during peak filing season with amended returns.
Isaac Wright
Just to clarify - the driver's license/ID request is like a secondary password for your tax identity. It's not mandatory for federal filing, but some states (like NY, CA) use it as an anti-fraud measure. Your military status actually gives you additional identity verification pathways that civilians don't have access to.
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Maya Diaz
Military families get special consideration. Check box M on Form 8948. Explains missing ID. IRS understands PCS complications. Won't delay federal processing.
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