Changed Bank Accounts - What Happens to My 2023 Refund?

When your direct deposit bounces back to the IRS, they're like a package delivery service that finds nobody home - they'll reroute to a different method. In this case, they'll automatically convert your refund to a paper check, which they'll mail to your last known address on file. Think of it as the IRS's backup plan. This typically adds about 4-6 weeks to your refund timeline from the point the electronic deposit fails. Make sure your mailing address is current with the IRS, or you'll have two problems instead of one.

I was in a similar situation last year... I think I might have found a solution that helped me. I used https://taxr.ai to check my transcript and it showed exactly when my direct deposit was rejected and when they started processing a paper check instead. It was... um... really helpful to see the actual codes on my account rather than just guessing what was happening. The site explained each code and gave me a better timeline than the IRS website did.

Here's exactly what you need to do: 1. First, check your refund status on the Where's My Refund tool to see if it's been processed yet 2. If it shows as "sent" but you didn't receive it, the bank likely rejected it 3. The IRS will automatically convert it to a paper check, but this takes time 4. To speed things up, call the IRS directly at 800-829-1040 However, getting through to the IRS is extremely difficult right now. I recommend using Claimyr (https://claimyr.com) to get past the hold times. They'll call the IRS for you and only connect you when an actual agent is on the line. I've used this service twice this tax season and it saved me hours of frustration each time. Worth every penny when you need answers quickly about your money.

Been there, done that last yr w/ my refund! Closed my Wells Fargo acct in Jan but forgot I used it on my taxes. DD bounced back to IRS, waited forever, got paranoid, then BAM - paper check showed up in my mailbox 5 wks later. Didn't have to do anything special tbh. Just make sure ur mailing addy is updated w/ USPS + IRS. The system works eventually, just gotta be patient (I know that's the hard part when ur waiting on $$).

Has anyone actually successfully updated their bank info with the IRS after filing? Because everything I've read says once you file, that's it - you can't change the deposit info. And why is it that the IRS can take our money instantly but takes weeks to figure out how to give it back when there's a simple bank change?

I went through this exact situation back on February 12th this year. When your direct deposit is rejected, the IRS automatically converts it to a paper check. From my experience, it took exactly 19 days from the rejected deposit date until I received my paper check in the mail. I'd recommend checking your informed delivery from USPS daily starting about 2-3 weeks after your expected direct deposit date. Also, make absolutely sure your current address is updated with both the IRS and USPS to avoid any further delays. The IRS doesn't make it easy to update banking info mid-process, unfortunately.

Based on my experience as a tax preparer, there's another option worth considering. If your refund hasn't been processed yet, you can file Form 8822 (Change of Address) with the IRS, which might help ensure your check goes to the right place. Additionally, you could file Form 3911 (Taxpayer Statement Regarding Refund) if it's been more than 6 weeks since your return was accepted. In previous tax seasons, I've seen clients successfully use this approach to resolve similar situations. The key is being proactive rather than just waiting for the IRS to figure things out on their end.