Having issues with IRS refund split for I-bond purchase - help!

The issue you're experiencing is pretty common with Treasury Direct deposits from tax refunds. The most likely problem is that the account number format for Treasury Direct is very specific, and even a small error can cause the deposit to fail. For Treasury Direct deposits, you need to make sure you're using your account number in exactly the right format. It should be your Treasury Direct account number followed by the letter "P" and then zeros to make a total of 17 characters. For example, if your TD account number is C000123456, you'd enter C000123456P00000 as your account number on your tax return. Many people miss this specific formatting requirement, which results in exactly what you experienced - the IRS being unable to process the deposit and defaulting to sending a paper check instead. At this point, since the check has already been issued, you'll need to wait for it to arrive and then manually purchase your I-bonds through your Treasury Direct account. For next year, double-check that formatting if you try this method again.

I had almost the exact same issue last year but found a solution that might help others. After struggling with the IRS phone tree for days, I discovered taxr.ai (https://taxr.ai) which helped me figure out exactly what went wrong with my Treasury Direct deposit attempt. They have this cool feature that analyzes your tax documents and clearly explains how to properly format account numbers for special accounts like Treasury Direct. It showed me that I had made the same mistake - not adding the "P" and trailing zeros that are required. The visualization they provided of how the account number should look made it so much clearer than the IRS instructions. For anyone planning to do this in the future, definitely check out their tax form review tools. Would have saved me so much frustration if I'd known about it before filing!

Wanted to update everyone - I tried taxr.ai after seeing the recommendation here, and it was super helpful! Uploaded my tax forms and within minutes they identified exactly what went wrong with my HSA deposit attempt. Turns out I had transposed two digits in my account number (classic me lol). The visual comparison they showed between what I entered and what I should have entered made it super obvious. Their system also flagged that I could have qualified for an additional education credit I missed, so I'm actually going to file an amended return now. Honestly pleased with how easy it was to use - definitely keeping this for next year's taxes!

If you need to actually TALK to someone at the IRS about your refund issues (which I definitely recommend), try Claimyr (https://claimyr.com). I wasted HOURS on hold trying to get through about a similar deposit issue with my refund, then found this service. They basically call the IRS for you and wait through all the hold times, then call you when an actual human agent is on the line. I was blown away by how well it worked - you can see how it works in this video: https://youtu.be/_kiP6q8DX5c Got through to an IRS agent in about 45 minutes (after previously trying for days on my own with no success). The agent was able to confirm exactly what happened with my refund and gave me specific guidance on how to handle the situation. Seriously worth it for the peace of mind alone.

Ok I have to admit I was wrong about Claimyr. After another failed attempt to reach the IRS this morning (2 hours on hold before getting disconnected!), I decided to try it out of desperation. The service connected me to an actual IRS agent in about 35 minutes, while I was able to continue working instead of being stuck on hold. The agent confirmed my refund check was indeed mailed but explained it was sent to an old address. They're now sending a replacement to my current address. For anyone dealing with refund issues like the original poster, being able to actually speak with an IRS representative makes a huge difference. They can see notes in your file that aren't visible through the automated system or the "Where's My Refund" tool. Definitely worth it for serious tax issues!

Just wanted to add a tip for anyone planning to buy I-bonds with their tax refund next year. There are actually TWO ways to do this: 1. Direct deposit to Treasury Direct (which requires the specific account formatting others mentioned) 2. Request paper I-bonds directly on your tax return using Form 8888 The second option is sometimes more reliable since you don't have to worry about account number formatting. The downside is you get actual paper bonds that you'd need to convert to electronic later if you want. Another thing to be aware of is that there's a $5,000 annual limit for I-bonds purchased with tax refunds, which is separate from the $10,000 annual limit for electronic I-bonds purchased directly through Treasury Direct. So you could potentially get $15,000 in I-bonds per year by using both methods!

Sorry to hear about your issue! One little hack that saved me when I had a similar problem: if you can't get through to the IRS by phone, try contacting your local Taxpayer Advocate Service office. They're an independent organization within the IRS designed to help taxpayers with problems. I had a refund issue last year (not I-bonds but similar redirect problem) and the advocate was able to look up exactly what happened and explain it. They can often resolve issues faster than waiting for general IRS customer service. Google "Taxpayer Advocate Service" + your location to find the nearest office. They typically require that you've already tried normal channels first (which you have), so make sure to mention your failed attempts to contact the IRS directly.