What Steps Should You Take When Your IRS Refund Goes to the Wrong Account?

When an IRS refund posts to the wrong bank account, acting quickly improves the chance of recovery. Below I lay out an orderly, IRS-aligned process I use in practice, including what the IRS can and cannot do, how banks handle ACH deposits, and the forms and documentation you’ll likely need.

Quick summary of the most important actions

  • Check the IRS “Where’s My Refund?” tool to confirm deposit status (IRS: https://www.irs.gov/refunds).
  • Contact your bank immediately to report the error and request an ACH trace or reversal.
  • If the IRS status shows a deposit but you didn’t receive funds, file IRS Form 3911 (Taxpayer Statement Regarding Refund) to start a refund trace.

(Also see FinHelp’s detailed page on Where’s My Refund? and our article on Refund Trace for expanded guidance.)

Step 1 — Confirm the IRS status and details

  1. Use the IRS “Where’s My Refund?” online tool to verify whether the refund was processed and the date the IRS sent the deposit (IRS: https://www.irs.gov/refunds). The tool is the single best starting point because it shows the IRS’s recorded delivery method and date.
  2. Keep a screenshot or print the page showing the status—this is useful evidence when you contact your bank or the IRS.

Why this matters: If the IRS shows the refund was deposited on X date, banks have a limited window to trace ACH transactions and may be able to reverse or recover funds.

Step 2 — Call your bank immediately

  1. Tell your bank you expected a direct deposit from the IRS and it did not arrive. Provide the IRS deposit date from the “Where’s My Refund?” tool.
  2. Ask the bank to trace the ACH transaction and to verify whether the deposit hit an account at their institution. Banks can sometimes recover funds if the deposit went to a closed account or if a routing/account number typo caused the transfer to be returned to the sender.
  3. If the deposit reached a different customer’s account at the same bank, ask the bank to initiate a recovery or reversal under ACH rules.

What banks can and can’t do: If the IRS deposited funds into a valid, existing account at another institution, banks may be limited—recovery often requires cooperation from the other bank or the account holder. If the deposit was to a closed account, the money is usually returned to the IRS and reissued.

Step 3 — If the bank can’t resolve it, file Form 3911 (Refund Trace)

  1. Download and complete IRS Form 3911 (Taxpayer Statement Regarding Refund). This starts an official trace by the IRS to locate where the refund went.
  1. Mail or fax the form as directed in the form instructions and attach copies of your return, the “Where’s My Refund?” screenshot, and any bank correspondence.
  2. Expect the IRS to take several weeks to investigate; typical traces can take 6–8 weeks depending on complexity and whether the funds are returned by the bank.

In practice I’ve found Form 3911 most effective when the status shows “Refund Issued/Refund Sent” but the taxpayer never received the funds.

Step 4 — If you suspect fraud or identity theft

  1. If you did not file the return or you believe someone filed using your information, contact the IRS Identity Protection Specialized Unit. The IRS has special procedures for identity theft and may issue an Identity Protection PIN (IP PIN) to protect future filings (see IRS identity protection resources: https://www.irs.gov/identity-theft-fraud-scams).
  2. File a police report with local law enforcement and notify your bank. Ask them to flag suspicious account activity and to freeze or monitor accounts as needed.
  3. Consider placing a fraud alert or credit freeze with the major credit bureaus.

Timelines to expect

  • If the deposit was to a closed or invalid account, funds are often returned to the IRS within days and the IRS issues a check or reprocesses.
  • If a trace is needed (Form 3911), the IRS investigation can take 6–8 weeks or longer for complex cases.
  • Banks’ internal tracing and reversal windows vary; prompt notification (within days) improves recovery odds.

Documentation you should gather now

  • Copy of your filed tax return showing the bank routing and account numbers you submitted.
  • Screenshot or printout from “Where’s My Refund?” showing the deposit status and date (IRS: https://www.irs.gov/refunds).
  • Bank statements showing deposits or lack thereof.
  • Any correspondence or case numbers from your bank or the IRS.

Keep everything in one folder (digital and/or paper). When I help clients, having all documentation in a single place significantly speeds up conversations with banks and IRS agents.

Common scenarios and what usually happens

  • Deposit sent to a closed account: Bank returns funds to the IRS; the IRS then reissues a refund (paper check or new direct deposit if refiled). This is usually the fastest resolution.
  • Typo in routing or account number that directs funds to a valid but different account: Recovery depends on the other account holder’s bank and their willingness to return funds. The IRS cannot unilaterally pull funds from another private account.
  • Fraudulent return: The IRS may place holds, require identity verification, and take longer to issue refunds while investigating.

Practical sample script to use when calling your bank

  • “Hello, my name is [Full Name], social security last four [XXX-XX-1234]. The IRS shows a refund was deposited to my account on [date], but I did not receive it. Please run an ACH trace using the date and originator code from the IRS. I can provide a screenshot of the IRS status.”

Provide the documentation and ask for a reference number for the call.

Preventive steps for future filings

  • Double-check routing and account numbers before e-filing; verify numbers by comparing to a printed check or bank portal.
  • Submit refunds to accounts in your name only. Avoid using third-party accounts or those that might have changed.
  • Consider requesting a paper check if you suspect bank account changes are imminent.

When to contact the IRS directly and how

  • Contact the IRS if your bank confirms funds were not deposited to your account and you’ve waited 21 days after the IRS shows it sent the refund. The IRS will instruct you on filing Form 3911 or other next steps.
  • Use IRS.gov contact pages for the most current phone numbers and instructions: https://www.irs.gov/help/telephone-assistance.

Additional recovery routes and legal options

  • If the funds were deposited into someone else’s account and the bank will not cooperate, you may need legal help. A civil claim may be necessary to recover funds from the account holder. Consult an attorney experienced in banking disputes.
  • If fraud is involved, coordinate bank and law enforcement efforts and get documentation of criminal investigation to present to the IRS and banks.

Final notes and realistic expectations

Recovering a misdirected IRS refund can be straightforward when the deposit is returned by the bank or was sent to a closed account. It becomes more complex and time-consuming if the deposit posted to another person’s active account. In my experience, the single most effective early actions are: check the IRS status immediately, call your bank the same day, and file Form 3911 if the bank cannot locate or recover the funds.

Professional disclaimer: This article is educational and not individualized tax or legal advice. For case-specific guidance, consult a tax professional or attorney. Sources used include the IRS “Where’s My Refund?” page and Form 3911 instructions (IRS: https://www.irs.gov/forms-pubs/about-form-3911) and IRS direct deposit guidance (https://www.irs.gov/payments/direct-deposit).

Related FinHelp resources:

If you need help preparing Form 3911 or documenting your bank communications, consider working with a qualified tax professional—early documentation and timely action materially increase recovery odds.