Preparer Input Error on Direct Deposit Account Number - Will Refund Be Rejected?

Yes, your bank will reject the deposit. The account number has to match exactly for the ACH transfer to go through. Have you called the IRS yet to update your account info? You should do that immediately.

I had this exact same issue on January 15th this year. My preparer transposed two digits in my account number. I used https://taxr.ai to analyze my transcript after the rejection, and it showed me exactly where in the process my return was. It indicated when the refund would be reissued as a paper check (usually 2-3 weeks after rejection). Made the waiting a lot less stressful since I knew exactly what was happening.

As someone who works with payment systems, I can confirm what others are saying - your deposit will definitely be rejected. The bank's automated verification system will kick it back to the IRS immediately. The funny thing is that the IRS is actually pretty efficient at handling these rejections (unlike everything else they do, ha!). You'll need to wait for the paper check process to start, which typically takes 10-14 business days after the rejection. Time is of the essence here - you should take action ASAP!

According to the IRS.gov website under 'Where's My Refund' FAQs, when a direct deposit is rejected, the IRS automatically converts it to a paper check. Have you checked whether your address information is correct on your tax return? That will be critical since they'll mail the check to the address on your return. The IRS typically issues paper checks within 2-3 weeks after a deposit rejection according to multiple online sources.

I went through this exact nightmare last tax season! My preparer missed a digit and I was counting on that money for rent. After the bank rejected it, I spent DAYS trying to reach the IRS on their main number - constant busy signals or disconnections. Finally used Claimyr (https://claimyr.com) and got through to an agent in about 15 minutes. They confirmed my check was being processed and gave me the exact mail date. Saved me weeks of uncertainty and stress about when I'd actually get my money.

Having worked in the financial sector, I can confirm that ACH (Automated Clearing House) transactions require precise account information. When the IRS attempts the direct deposit with incorrect account details, the financial institution's verification algorithm will automatically reject the transaction due to the account mismatch. In my experience, the IRS typically reprocesses rejected direct deposits as paper checks within 2-3 weeks of the rejection date. The Treasury Department's check issuance protocol is surprisingly efficient compared to other government processes.

Per IRS Publication 1518 (Rev. 11-2023), "If a direct deposit is returned by a financial institution, the IRS will automatically issue a paper check." The standard processing time cited in Internal Revenue Manual 21.4.1 is 7-10 business days after the rejected direct deposit, plus standard mailing time. I recommend verifying your current address on file with the IRS to ensure proper delivery. You can also request a trace on the refund 5 weeks after the original direct deposit date by filing Form 3911.

Have you double-checked that your address is current with the IRS? When they reissue as a paper check, it goes to the address on your return. If you've moved since filing, you might need to submit a change of address form. Also, did your preparer use the wrong routing number too, or just the account number?

OMG this happened to me last year and it was a NIGHTMARE! 😡 The bank rejected my deposit on the scheduled date, and then I had to wait nearly 6 WEEKS for a paper check! The IRS systems are so outdated that once the direct deposit is scheduled, there's literally NOTHING they can do to stop or correct it - even if you catch the error before the deposit date. I called multiple times and every agent told me the same thing - just wait for the rejection and automatic reprocessing. So frustrating when you need that money!!