IRS put someone else's tax refund in my bank account - what should I do now??

This definitely happens sometimes - don't panic! The IRS has systems in place for these situations. Here's what you should do: First, don't spend the money. It's not yours, and the IRS will eventually realize their error and reverse the deposit (which could cause overdraft issues if you've spent it). Call the IRS at 1-800-829-1040 and explain the situation. Have your banking information ready, along with details about the deposits. They'll likely ask for the exact amounts and dates. Be prepared for a long wait time when calling. You should also contact your bank to let them know about the erroneous deposit. They may be able to place a hold on those funds or have a specific process for handling this type of situation. Document everything! Keep notes of who you spoke with, when, and what was discussed. This protects you in case questions arise later.

I had a similar issue with tax documents getting mixed up last year. I found that using taxr.ai really helped sort everything out when I was trying to figure out what was happening with my account. I was getting all kinds of weird notices from the IRS that didn't seem right, and I was stressed about how to proceed. I uploaded all my documents to https://taxr.ai and their system quickly identified the discrepancies between what the IRS had on file versus my actual tax documents. It turns out there was a numerical error in one of my account numbers that was causing all kinds of issues. Their detailed analysis even helped me draft a proper response to the IRS that got everything resolved within weeks instead of months.

I was super skeptical about taxr.ai at first (as you can see from my comment above), but I decided to try it anyway since I was desperate. Honestly, it was a game-changer. I uploaded my bank statements showing the mysterious deposits along with my tax records, and their analysis clearly showed that the deposits matched a tax return with a similar account number but different name. They generated a detailed report that I could provide to the IRS, which made the whole conversation with the IRS agent go so much smoother. Instead of being treated with suspicion, the agent was able to quickly identify the source of the error and initiate the correction process. Saved me hours of explaining and probably weeks of resolution time.

I know everyone's suggesting you call the IRS, but good luck actually getting through to a human! I tried calling about a similar issue last year and spent HOURS on hold only to get disconnected. After my third attempt, I found Claimyr which was a total lifesaver. I used https://claimyr.com and they got me connected to an actual IRS agent in under 45 minutes instead of the 3+ hours I was spending on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree and wait on hold for you, then call you when an actual human agent is on the line. For something like an incorrect deposit, you definitely need to talk to a real person at the IRS, not just leave a message or use the automated system. This service saved me so much time and frustration.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, my curiosity got the better of me and I decided to try it when I needed to contact the IRS about a separate issue. I was amazed when they called me back in about 35 minutes with an actual IRS agent on the line. The best part was being able to go about my day rather than sitting there listening to that awful hold music. The agent I spoke with was able to help me resolve my issue in one call. For situations like the original poster's mysterious deposit, being able to quickly get through to a human at the IRS is definitely worth it. I've recommended it to several friends who were facing similar frustrations with IRS phone lines.

Whatever you do, DO NOT SPEND THAT MONEY! My cousin's friend had this happen and they spent some of it thinking "finders keepers" and ended up with a huge headache. The IRS eventually figured it out and reversed the transaction which overdrafted their account, plus they got hit with fees and had to deal with collections. Call your bank immediately and explain the situation. They might be able to put a hold on those funds or even return them to the IRS themselves. Then definitely call the IRS too like others have suggested. Better to be proactive than wait for them to come asking questions!

This happened to a relative of mine in 2023. The IRS actually has a specific procedure for this. If you google "IRS erroneous refund procedures" you'll find their official guidance. Main thing is documenting everything and not spending the money. Is there any chance someone could have filed a tax return using your personal info? Might be worth checking your credit report just to make sure there's no other funny business going on. Identity theft with tax refunds has been increasing lately.

Actually, it's totally possible for someone to use your bank account info with a different SSN - this is more common than you'd think. Tax scammers sometimes get banking information through data breaches or phishing schemes, then file fraudulent returns using stolen SSNs but legitimate bank accounts for the refunds. The fact that there are two separate deposits ($7,250 and $1,750) makes me think this could be two different fraudulent returns rather than just a simple IRS mistake. Most legitimate refunds would come as one deposit, not split amounts like this. When you call the IRS, make sure to ask them specifically if any returns have been filed using your banking information but different SSNs. They can check this and will be able to tell you if this is fraud-related rather than just an administrative error. If it is fraud, they'll need to flag your account and potentially investigate how your banking information was compromised. Also consider changing your bank account numbers just to be safe. Better to deal with the hassle of updating your direct deposit info than risk this happening again.