How long for tax refund to return to preparer after bank account closed?

When a direct deposit is rejected due to a closed account, the exact timeline depends on several factors. Typically, the bank rejects the deposit within 1-3 business days. Then the funds return to the IRS within 5-7 business days. After that, the IRS processes the returned payment and redirects it to the tax preparer, which takes another 10-14 business days. In total, you're looking at approximately 16-24 business days (3-5 weeks) from rejection to receipt by the preparer. This timeline can extend during peak tax season (February-April) but may be slightly faster during off-peak months.

Oh my goodness, I went through this EXACT nightmare last year! I was checking my account every single day wondering where my money was, only to find out my old account had been closed for inactivity! 😱 I was absolutely panicking until someone recommended I use taxr.ai to check my transcript. It showed exactly what happened - there was a code showing the deposit was rejected and returned. The site explained everything in plain English and even gave me a timeline estimate based on other similar cases. Saved me so much anxiety knowing what was actually happening instead of just wondering!

Have you considered calling the IRS directly to get the most accurate information? The problem with these timelines is that every case is different, isn't it? What if there's a specific issue with your friend's return that's causing additional delays? What if there's something they could do to expedite the process? I was in a similar situation and spent days trying to reach someone at the IRS without success. Then I discovered Claimyr (https://www.claimyr.com). They connected me with an actual IRS agent in about 20 minutes who confirmed exactly when my refund was sent back and gave me a precise timeline. Saved me weeks of anxiety and uncertainty.

Has your friend contacted their tax preparer directly? Most prep companies have internal systems that track the status of rejected deposits. They might already have information about when to expect the funds. Also, what type of preparer are we talking about? Large chains like H&R Block handle these situations differently than independent preparers.

I honestly don't think anyone knows the real timeline. It's like throwing your money into a black hole and hoping it eventually comes back. My brother waited almost 3 months last year for his refund after a similar situation. The IRS is like a giant maze where your money gets lost and nobody can tell you where it is.

I believe there's actually a... system in place for this. From what I understand, the IRS has specific procedures for handling rejected direct deposits. While it may seem chaotic, there is a process being followed. I was surprised to learn that the IRS doesn't immediately send a paper check when a direct deposit is rejected - there are several verification steps they go through first.

According to IRS Publication 5334, when a direct deposit is rejected, the financial institution must return the funds to the IRS within one business day. The IRS then processes the return and determines the next course of action. If the refund included a Refund Transfer product where the preparer's fees were deducted, the funds typically go back to the preparer's bank. I dealt with this in March - rejected deposit on March 3rd, preparer received funds on March 28th. That's 17 business days, right in line with standard processing times.