Why reconcile

Reconciling an IRS refund notice with your bank statement verifies you actually received the money the IRS reported. Differences can come from offsets for debts, bank processing items, direct‑deposit errors, identity verification holds, or IRS processing delays. Catching problems early reduces stress and shortens recovery time.

Quick checklist (step‑by‑step)

  1. Gather documents
  • Save the IRS notice or screenshot the “Where’s My Refund?” message. (The IRS tool is at https://www.irs.gov/refunds.)
  • Export the relevant bank statement(s) covering the expected deposit date.
  1. Match amount and date
  • Compare the exact dollar amount, deposit date, and description in your bank ledger. The IRS posts the refund date; banks usually show the deposit date and a transaction description.
  1. Confirm direct‑deposit details
  • Verify the bank account and routing number you gave on your return. If you used a tax preparer or refund transfer product, confirm whether any third‑party fees or disbursements apply.
  1. Check for offsets or holds
  1. Trace missing or misdirected deposits
  • If the IRS shows a refund but your bank has no deposit, start with the IRS “Where’s My Refund?” tool and then file Form 3911 (Taxpayer’s Statement Regarding Refund) if needed. IRS tracing info: https://www.irs.gov/individuals/get-transcript.
  1. Contact your bank and the IRS as appropriate

Common causes of differences

  • Offsets (child support, federal debts, state tax debts)
  • Identity verification holds or fraud reviews by IRS
  • Bank processing delays or internal holds
  • Third‑party refund processors or prepaid debit card fees
  • Refunds deposited to a closed or incorrect account

When to escalate

  • If 21 days have passed since e‑filing and Where’s My Refund still shows ‘Refund Approved’ but no deposit, start a trace. The IRS commonly quotes 21 days for e‑filed refunds, but high volume or verification can add time; check IRS.gov for current processing guidance (https://www.irs.gov/newsroom/refunds).
  • If your refund was offset and you disagree with the offset, contact the agency that received the funds (e.g., state agency, Department of Education for federal student loans). Our article on offsets explains how they work: “How Refund Offsets Work: Child Support, Student Loans, and Other Debts” (https://finhelp.io/glossary/how-refund-offsets-work-child-support-student-loans-and-other-debts/).

Practical examples from practice

In my practice, one client’s notice showed a $900 refund but the bank credited only $800. The bank had applied a prepaid refund card fee and the preparer’s refund‑advance fee—both were disclosed in the tax‑prep paperwork. In another case the IRS had placed a verification hold; once the client supplied identity documents, the refund posted within two weeks.

Tools and records to keep

  • Keep a dated copy (paper or PDF) of the IRS notice and bank statement.
  • Use accounting software or a simple spreadsheet to flag expected refunds and mark them when reconciled.
  • Set alerts on your bank account for ACH credits.

Short answers to likely problems

  • If the refund amount is wrong: Compare the IRS notice to your tax return. If IRS made an error, contact them; if you made an error, you may need to file an amended return.
  • If no deposit is visible: Check Where’s My Refund, then file a trace (Form 3911) after IRS verification steps.
  • If funds were offset: Review the offset notice and contact the agency listed on that notice; see our offset guide above.

Resources and authoritative references

Professional disclaimer

This content is educational and not tax or legal advice. For personalized help, consult a licensed tax professional or contact the IRS directly.