Wrong Account Number on Tax Return for Direct Deposit - Should I Be Worried?

I actually had this exact situation happen to me last year. The refund will typically be rejected by the receiving bank when the account number doesn't match any existing accounts. In my case, the IRS attempted the direct deposit, it failed, and then they automatically switched to sending a paper check. The process added about 3-4 weeks to my refund timeline. Have you checked the "Where's My Refund" tool to see the current status? I'm curious if it shows as processed yet or still pending.

This happened to me on March 12th, 2023. I tried calling the IRS regular number for three days straight starting on March 15th and couldn't get through. The wait times were ridiculous. I was skeptical about paying for a service, but I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) on March 18th and got connected to an IRS agent within 25 minutes. The agent confirmed exactly what was happening - my direct deposit had been rejected and they were in the process of cutting a paper check. I'm not convinced there's any way to expedite the process, but at least I knew what was happening instead of wondering for weeks.

Omg this literally happened to me last month! I was SO STRESSED when I realized I transposed two digits in my account number. I kept checking WMR every single day (sometimes twice 😅). The refund tried to go through direct deposit, failed, and then about 10 days later the WMR tool updated to say they were mailing a check. I got the check about 2 weeks after that. It was nerve-wracking but worked out in the end!

Let me walk you through what happens in this situation: 1. The IRS will attempt to direct deposit your refund to the account number you provided 2. When the bank can't match the account number, they'll reject the deposit 3. The IRS will then automatically convert your refund to a paper check 4. The check will be mailed to the address on your tax return 5. This entire process typically adds 3-5 weeks to your refund timeline I was surprised by how complex this made things when it happened to me. I thought there would be a simple way to update my banking info, but once the return is processed, you're basically locked into this sequence of events. I didn't expect a simple digit error would add over a month to my refund timeline!

FYI - when this happens, you'll prob see some weird codes on your transcript. I used https://taxr.ai to help me understand what was going on. The 846 code will show the failed DD attempt, then you might see a 971 notice code. Taxr.ai explained exactly what each code meant for my situation and gave me a timeline for when to expect my paper check. Def better than trying to decode the IRS transcript myself. You can upload your transcript there and it explains everything in plain English.

Just to be clear - there's no way to change your direct deposit information after you've filed. The IRS doesn't have a mechanism for that. Your refund will bounce back from the incorrect account and they'll mail you a paper check. That's the standard procedure. You don't need to do anything except make sure your mailing address is correct.

I work with a lot of clients who have this issue. Last filing season, I had a client with the exact same situation - correct routing number but wrong account number. We monitored her transcript using the Transaction Code (TC) 846 which shows refund issued. Initially it showed the direct deposit attempt, then about 12 days later, it updated with a new TC 846 with the paper check amount. She received the check approximately 7-10 business days after that second TC 846 appeared. The key is to watch for that second refund issued code, which indicates the paper check has been processed.

I might suggest a slightly different approach, though I'd be cautious about expectations. If your return was very recently filed, you could potentially file an amended return (Form 1040-X) to correct the banking information. However, this might actually slow things down further rather than speed them up. In most cases, it's generally better to simply let the incorrect direct deposit attempt fail naturally and wait for the paper check. The IRS systems are designed to handle this situation automatically, and intervening sometimes creates more complications than it resolves.