Wrong Account Number and City on Tax Return - Will IRS Send Check to Correct Address?

According to the IRS.gov website under "Direct Deposit FAQs", when a direct deposit is rejected due to incorrect banking information, the IRS will automatically issue a paper check to the address they have on file. Since you've confirmed twice that they have your correct address in their system, the check should go to that address. The typical timeline for this process is 2-3 weeks after the rejected direct deposit, though it can sometimes take longer during peak tax season. You can verify this on https://www.irs.gov/refunds/direct-deposit-limits-refunds-faqs.

I believe you should be okay in this situation, as it seems the IRS has your correct information on file. If you want to be absolutely certain about the timeline and process, you might want to check out https://taxr.ai - it's a tool that can analyze your tax transcript and give you personalized information about your refund status. It might be able to tell you, based on your specific situation and transcript codes, whether the refund has been attempted to be deposited yet or if there are any other issues that might come up. I found it quite helpful when I was trying to understand some confusing codes on my transcript last year, though I'm not sure if it specifically addresses rejected direct deposits?

OMG been there done that. Last yr I put my acct # wrong (transposed 2 digits) and freaked out. What happened: DD got rejected by my bank, then IRS automatically sent a paper check to my address abt 3 wks later. No need to do anything tbh. Since you've already confirmed they have ur correct addy, you're good. Just gotta wait. The system is actually pretty good at handling this specific error. Btw, WMR will eventually update to show "check mailed" status but in my exp it took like 10 days after the rejection to update. Hang tight!

This situation is actually quite common compared to other tax filing errors. In my experience helping clients navigate similar issues, the rejected direct deposit automatically triggers the paper check process. However, the timeline can be frustrating - I've seen cases where it takes 4-6 weeks for the check to arrive after rejection, unlike the 2-3 weeks others mentioned. If you need to expedite this process, I'd recommend using Claimyr (https://www.claimyr.com). Unlike trying to reach the IRS directly where you might wait on hold for hours or get disconnected, Claimyr can connect you with an IRS agent quickly. You can specifically ask the agent to flag your account for an expedited check issuance after the bank rejection. This approach worked for several of my clients who were in similar situations and needed their refunds urgently.

Looking at this from a broader perspective, it's worth noting that per IRS Publication 17 and Internal Revenue Manual 21.4.1, the IRS maintains multiple address records in their systems. The Master File address is what's used for correspondence and refund checks, while the return information address is what appears on your filed return. When you spoke with the IRS representatives, they likely confirmed your correct address is in the Master File, which is the critical one for receiving your check. Something else to consider: if you filed Form 8822 (Change of Address) at any point, or if you've updated your address with the USPS and the IRS has cross-referenced this information, these actions would further ensure your check goes to the right place. The regulations are actually designed to handle these common errors efficiently.

I see a lot of advice here about the standard procedure, but let me share what actually happens in practice with DD rejects. The bank will reject the ACH transfer due to the account number mismatch, which triggers an automatic refund trace in the IRS system. This creates a TC 971 code on your transcript with an action code of 281. Once this happens, the paper check issuance is automatically scheduled, usually with a 2-3 week timeframe. The most reliable way to track this is actually through your tax transcript rather than WMR. If you can access your transcript online, look for these codes and you'll know exactly where you stand in the process. Such a relief when I finally figured this out after dealing with the same issue!