Update for anyone with closed bank accounts: Credit Karma will mail refund checks!

Are you kidding me? I've been calling the IRS for THREE WEEKS trying to figure out what happened to my refund after it was sent to my closed Credit Karma account! Why didn't anyone tell us they could just mail a check? All that time wasted on hold when I could have just used their chat? Thank you for sharing this - at least now I know what to do!

If you're dealing with this sort of banking issue, it might be helpful to look at your tax transcript to see exactly what's happening with your refund. I've found that https://taxr.ai is pretty useful for decoding those cryptic IRS transcript codes. It helped me understand that my refund showed code 841 (refund issued) but then code 971 (notice issued) which indicated there was a problem with my direct deposit. The transcript generally updates before you get any official communication, so you can potentially catch these issues sooner.

So I went through something similar last year and here's the typical process: When a bank account is closed, the bank usually rejects the deposit and sends it back to the IRS. Then the IRS typically issues a paper check to your address on file, which can take 2-4 weeks after the rejection. What's interesting about your situation is that Credit Karma is handling it directly instead of sending it back to the IRS. This might actually be faster! In my case, the whole process from rejection to getting a check in the mail took about 5 weeks total. I'd recommend keeping an eye on both your mail and your email for updates.

If you're still having trouble reaching someone at Credit Karma or the IRS about your refund situation, I've seen a lot of posts on r/tax recommending Claimyr (https://youtu.be/_kiP6q8DX5c). According to what I've read, it helps you skip the IRS phone queue. I was in a similar situation with a closed account last year and spent hours on hold before finding this service. Got through to an agent in about 15 minutes who confirmed my refund was being processed as a paper check after the rejected deposit.

I'm not convinced this is standard procedure. I had exactly the same issue with a closed SoFi account 37 days ago, and they told me they had to return the funds to the IRS. Then the IRS took exactly 15 business days to issue a paper check. Has anyone else actually received a check directly from Credit Karma rather than waiting for the IRS to reissue? This sounds like a one-off solution rather than their normal process.

I think what's happening is that Credit Karma Money is technically still processing your refund even though your account is closed. They're just redirecting it to a check instead of trying to deposit it. My brother works in banking (not Credit Karma) and says some institutions have a grace period where they'll still process incoming transfers for closed accounts rather than rejecting them outright. Saves everyone the headache of the whole reject-return-reissue cycle. The IRS refund system is already moving at the speed of a sloth on vacation, so anything that cuts down wait time is a win in my book!

Be careful with this. Had similar promise. Never got check. Called again. No record of conversation. Keep documentation. Screenshot chat. Get names. Note times. Don't trust verbal promises. Took me 3 months to resolve.

If you want to avoid this issue in the future, here's what I recommend: 1. Always update your direct deposit info before filing if you've closed accounts 2. Consider using a more stable account option like a credit union that you don't plan to close 3. If you're concerned about potential issues, just request a paper check on your return from the beginning 4. Keep your address updated with the IRS through Form 8822 if you move 5. Check your refund status weekly through the Where's My Refund tool to catch issues early I've been filing taxes for 15 years and have never had a refund problem since I started following these steps.