Direct Deposit Rejected with TurboTax - Will Transcript Update Before Paper Check?
Hello everyone. I'm trying to understand the sequence of events with my refund. I filed with TurboTax about 3 weeks ago and just discovered my direct deposit was rejected (apparently my bank account number was entered incorrectly). Here's what's happened so far: 1. Filed through TurboTax on March 12th 2. Received acceptance notification on March 13th 3. WMR showed processing until yesterday 4. Now WMR says my deposit was rejected My question is: Will my transcript update with the new information about the paper check before they actually mail it? I'd like to know when to expect it since I'm planning a trip next month and don't want it sitting in my mailbox. I've been checking my transcript daily but it still shows the direct deposit date that obviously didn't work.
11 comments
Write a comment...
Chloe Anderson
Have you checked if your transcript shows any TC 971 code? That usually indicates a rejected direct deposit. Did your WMR message specifically say they're mailing a check instead? Sometimes they attempt the direct deposit again with corrected information if you called them.
0 coins
Write a comment...
Diego Vargas
This happened to me but with H&R Block instead of TurboTax. The transcript didn't update until AFTER they mailed the check. It's completely different from how they handle normal direct deposits where the transcript updates first. My transcript still showed the original direct deposit date for almost 2 weeks after the rejection, then suddenly updated with a 971 notice code. The check arrived 3 days after that transcript update.
0 coins
Anastasia Fedorov
I can confirm this from my experience last year. The IRS website states that when a direct deposit is rejected, they automatically issue a paper check, but their internal systems don't always update the transcript immediately. According to the IRS procedures at https://www.irs.gov/faqs/irs-procedures/refund-inquiries/refund-inquiries-0, they typically mail a check within 2-3 weeks of a rejected direct deposit, but the transcript update might not happen until the check is actually processed for mailing.
0 coins
15d
StarStrider
Thx for sharing this! Had the same issue w/ DD rejection last yr. Transcript didn't update for like 10 days after WMR showed the rejection msg. Paper check showed up in my mailbox before the transcript even changed lol. Def don't rely on transcript for accurate info in this specific situation.
0 coins
14d
Write a comment...
Sean Doyle
Have you considered using a transcript analysis tool? When my deposit was rejected last year, I was completely confused by all the different codes and dates on my transcript. I used https://taxr.ai to analyze my transcript and it immediately identified the rejection code and explained what was happening. Wouldn't it be nice if the IRS just clearly explained these things instead of making us decipher cryptic codes? The tool predicted my paper check mail date within 2 days of when it actually arrived. Saved me a ton of stress trying to figure out what all those codes meant.
0 coins
Write a comment...
Zara Rashid
Same thing happened to me. Bank rejected deposit. Transcript didn't update. Called IRS daily. No help. Check arrived April 3rd. Transcript updated April 5th. Makes no sense. Still showed old DD date until after check arrived. Very frustrating. Check your mail carefully.
0 coins
Write a comment...
Luca Romano
I had this exact situation last tax season (though I'm laughing now at how stressed I was about it then 😂). After my deposit was rejected, I tried calling the IRS for THREE DAYS straight and couldn't get through. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent in about 15 minutes. The agent confirmed exactly when my check was scheduled to be mailed, which was super helpful since I was also planning to be away. Saved me from having to keep checking my transcript every hour like a crazy person!
0 coins
Nia Jackson
Wait, you actually got through to a real IRS agent using that service? I tried calling on March 15th, April 2nd, and again yesterday. Each time I was on hold for over an hour before getting disconnected. I didn't know there were services that could help with this!
0 coins
12d
Mateo Hernandez
I used Claimyr last year when my return was stuck in processing. Worked exactly as advertised. They called the IRS, navigated the phone tree, waited on hold, then connected me once an agent was on the line. Much better than my previous attempts where I spent literally 4 hours on hold only to get disconnected.
0 coins
11d
CosmicCruiser
Does the IRS agent actually tell you the specific date they'll mail the check? I'm in the same situation and really need to know if I should make arrangements with a neighbor to check my mail while I'm away. Did they give you an exact date or just a general timeframe?
0 coins
9d
Write a comment...
Aisha Khan
Be aware that according to IRM 21.4.1.4.7 (Internal Revenue Manual), when a direct deposit is rejected, the IRS automatically converts it to a paper check, which is typically issued within 2-4 weeks after the rejection. However, this timeframe can be extended during peak processing periods. The transcript often doesn't update with a new 846 code (refund issued) for the paper check until after it's been processed for mailing. I strongly recommend setting up mail forwarding with USPS if you'll be away, as the IRS will use the address on your return and cannot expedite or redirect the check once it's in process.
0 coins
Write a comment...