Did you finally receive the illusive HDD and did not receive your refund on that date? One of our new users explained a possible cause.

32inchforgiatos Says:
April 13, 2012 at 3:29 pm
Another branch of the IRS may have intercepted your refund for further review. When this happens, IRS Customer Service may tell you that the refund has been sent out when in fact it never reached your account. This is part of the IRS Revenue Protection Strategy and it insures that questionable information on a tax return is addressed before paying out the refund. If this happened in your case, you will get a letter from the IRS within the next few weeks to explain why your refund was withheld. They may need more information from you in order to complete the review and disburse your refund.

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[Anonymous]

1. Double Check Direct Deposit Routing Number, number for number
2. Double Check Direct Deposit Account Number, number for number
3. Verify that you checked the right type of account (checking/savings) on your tax software (If you had it DD in a savings account, make sure you or your accountant didn’t check “checkings.”)
4. Call your bank to see if deposit was rejected for any reason (Wrong account number, name not matching, if it is a small down home bank you will find out this reason within 10 minutes, big banks are harder.)
5. If bank has no idea, wait until the day specified on Where’s My Refund (Where’s My Refund (WMR)) to call the IRS, they will mail you out a check pretty quickly. I know people that have gotten their checks within 2 weeks of failed direct deposit dates… Shortest was about 1.5 weeks.

Always wait a full five days after your failed HDD date to call the IRS (so you won’t waste 30 or more minutes of your life on hold just to hear “We can’t give you information until….” If you filed on April 25, don’t call till the 30th.

Failed direct deposits can happen for a multitude of reasons, the most common being entering wrong routing and account numbers, or putting them in the wrong places on the tax return (switching the numbers). One of my banks, a credit union, denied multiple deposits because many banks are adopting the policy of not accepting returns that have a different name than the bank account. Every return that is supposed to be direct deposited has a specific set of ACH deposit instructions that go from the IRS to the bank about a day before your return is supposed to be deposited. If your bank sees another name on their that does not completely match the name on the account, they may deny it. They also may deny it for having incorrect account numbers. The worst thing is that if you entered in the wrong account number and it was connected to another bank account at that bank, then it will be put in that account with no question (this is for banks that have not adopted the name matching policy yet). People who this has happened to have reported NEVER receving their tax returns. Of course, the IRS is not responsible for a lost return due to incorrect account numbers! Unless it of course comes back to them as rejected, in that case you will get a check in the mail within 2-6 weeks to the address listed on your tax return..

Refer to this link for more information about people who lost their tax returns FOREVER:

http://taxes.about.com/b/2006/09/25/incorrect-direct-deposit-of-tax-refund.htm

[Author]

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