Some taxpayers are taken aback when they open their mailbox and see a tax refund check. Especially, when they requested the IRS to send a direct deposit instead.
The IRS explains that there are several reasons why this could happen to any taxpayer in this situation. More often than not, it could be an issue with your financial institution.
There can be occasions when a bank or financial institution rejects a direct deposit. It could be the case that your bank account was closed after sending your tax return. If you gave the wrong routing number, a direct deposit may not reach your account.
IRS CAN’T DEPOSIT MORE THAN 3 ELECTRONIC REFUNDS IN 1 ACCOUNT
If all your family members share the same bank account and you are more than 3 different filers, the IRS can only send up to 3 direct deposits to a single bank account.
Do not forget that the Internal Revenue Service can only deposit a tax refund if the bank account is yours. That is, this account is in your own name and not others’.
Believe it or not, sometimes there can be a mistake and you may receive a tax refund from someone you do not know. The IRS explains that this is what you should do in that situation.
WHAT SHOULD I DO IF I GET A REFUND IS NOT MINE?
Although it is unlikely, some citizens may have received a tax refund but it is not from their tax account. If so, you should never cash that refund check because the IRS must have made a mistake.
Therefore, send the refund back to the IRS. On other occasions you may receive a direct deposit that is partly your, but not the full amount.
As soon as you find out that it is an erroneous tax refund, send it back to the IRS. Interest may accrue on the erroneous refund. Call the Internal Revenue Service to help you sort it out at 800-829-1040 (individual) or 800-829-4933 (business).