Do you need to change your banking and routing numbers for your tax refund from your checking account to your savings account, or vice versa? If so, we can walk you through the process. If necessary, you can change a wrong bank account and routing number for a tax refund. However,
the process is different depending on whether or not you’ve successfully filed your return. If you haven’t yet filed your return, or if the IRS rejected your return: When prompted, enter your routing number and account number. Re-enter the same information to confirm. If you’ve
already filed your return, you can review your direct deposit information on a copy of your return. If the IRS has accepted your return already, you won’t be able to change your bank and routing number for your tax refund. You can only request that the IRS issue you a check – and that’s only if the return has not yet been processed. If you don’t contact the IRS, they’ll first try to send your refund to the bank account and routing number listed in the return. If the bank
returns your direct deposit, the IRS will send a paper check to the mailing address listed on your return. If you want to change your bank account or routing number for a tax refund, call the IRS at 800-829-1040.Steps to Change Your Bank Account and Routing Number for Your Tax Refund
Whether you mailed or e-filed your business tax return, the Internal Revenue Service presents you with two options to receive your refund: direct deposit or a paper check. If you opt for direct deposit, you must provide your bank routing number and account number on your return. If your preparer used the wrong account number on a tax return, the IRS assumes no responsibility for this type of error. The fate of your refund depends on who caught the error: you or the IRS.
IRS Rejects Tax Return
In some cases, if the IRS suspects an error with your routing number or bank account number, it will reject your return. Your preparer should receive rejection code "0019," which indicates an invalid bank account or routing transit number. Instruct your preparer to provide the correct bank and routing number on your tax return and resubmit the forms.
Bank May Catch Error
Once the IRS processes your tax return and issues a refund, it will attempt to deposit the return in the account designated on your income tax return. In most cases, your bank matches the name and Social Security number on the deposit with the information on the account. If the information doesn't match, your bank will either reject the direct deposit from the IRS or deposit the money in the correct account.
If the bank doesn't perform this security check and the account on your tax return matches an actual account of another person, the refund might appear on the other person's account. If your bank accepts the deposit but you don't see a refund in your account by the date specified by the IRS, contact your bank to investigate the problem, Drake Software suggests.
IRS Issues Paper Check
If the IRS discovers the error after processing your return or your bank rejects the deposit, the IRS will issue you a paper check for your refund. A paper check can take up to several weeks to arrive. Once you receive the check, you can deposit it into your bank account. Depending on your bank procedure, it could take several days for the check to clear and to gain access to the funds.
Avoid Future Problems
Although you paid a preparer to file your income taxes, it is your personal responsibility to double-check the information on the return. Once you sign the tax return, you guarantee that the information on the return is accurate to the best of your knowledge. The only time a preparer is responsible for an error is when the preparer discovers the error and fails to inform the client.
Some reputable preparers and tax preparation organizations will verify account information and fix any errors if caught before filing, but it is considered your fault that you did not discover the error when reviewing your return before final submission. When filling out your taxes, have a blank check on hand to verify your routing and bank account numbers. Always verify the numbers two or three times to ensure the information you provided is accurate and avoid a delay in receiving your refund.
Direct deposit saves you a trip to the bank on payday, as long as you provide the right banking information to your payroll processor. To prevent errors, many payroll departments ask you to provide a canceled check along with your direct deposit enrollment form. If you do happen to write down the wrong account number on your form, you will need to correct it as soon as possible.
In most cases, the bank will catch the error and return your money to your employer rather than making the deposit in the wrong account. If the bank fails to catch the mistake, the erroneous deposit gets reversed and then a proper deposit made into your account.
TL;DR (Too Long; Didn't Read)
If you wrote the wrong number on your direct deposit form, the bank might detect the issue and refund the money to your employer, or it might reverse the deposit and place it in your correct account. You can face a delay in your pay as a result of this error.
No Deposit on Pay Day
You'll know something is wrong when you find out that your direct deposit didn't get credited as planned. Once you suspect that you provided the wrong account number, call your bank to ask what happens to the deposit in this situation. Usually the deposit goes back to the payroll department. In that case, you need to contact your employer or payroll agency and inform someone there of your mistake.
Unfortunately, this means you won't have access to your money until the issue gets resolved. Your payer may require that the money return to its account before re-sending it or cutting you an old-fashioned paper check. Once you've corrected your account number, the next direct deposit will go through seamlessly.
Running a Trace
If you didn't receive your funds and the payroll department didn't get the money back from the bank, payroll will have to initiate a trace to find out where the money went. This might take time. If you can prove that the money you're due didn’t end up in your account, you can make a case for getting your deposit replaced while the bank is tracing the lost funds. Obviously, this will require that you provide the correct account number this time around.
There's no guarantee this will work, but it's worth a try if you need the funds to cover important expenses. You may not see your money until the payroll department does, but it never hurts to ask.
Direct Deposit Advantages
If you provide the wrong account information, your experience with direct deposit may get off to a rocky start. Using direct deposit option has several advantages, however. For one, you won’t need to go to the bank on your lunch hour to deposit your paycheck or rush across town after work before the bank closes. If you’re waiting for a tax refund check or government benefit payment, you don’t need to worry about someone stealing it from your mailbox.
In many instances, the deposit will show up the morning of your regular payday. There might also be cases when it arrives before your co-workers get their paper checks. And because the transaction is electronic, your bank typically allows you to use the funds immediately rather than waiting for a paper check to clear the issuing bank’s coffers.
Who Uses Direct Deposit
Direct deposit is so commonplace among employers and government agencies that you may just assume it's offered. In fact, federal benefit payments require it. Recipients who don’t have bank accounts receive a pre-paid debit card to hold their deposits. If you already have direct deposit at your employer and are considering switching banks, you'll need to fill out a new form with the new account number to ensure your pay still arrives correctly and on time.
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Writer Bio
Based in Central Texas, Karen S. Johnson is a marketing professional with more than 30 years' experience and specializes in business and equestrian topics. Her articles have appeared in several trade and business publications such as the Houston Chronicle. Johnson also co-authored a series of communications publications for the U.S. Agency for International Development. She holds a Bachelor of Science in speech from UT-Austin.