Your bank returned your refund — here's what happened and what comes next
When the IRS sends your tax refund to your bank account and the bank sends it back, the IRS doesn't automatically resend it to a different account or hold it for you. Instead, the refund enters a holding period at the IRS, and you have to take the next step yourself. The bank rejection usually happens because the account number or routing number on your tax return was wrong, the account was closed, or the account holder's name didn't match the one on the return.
The IRS will eventually send the money back to you, but not immediately — and not without action on your part. You have up to 120 days to contact the IRS with corrected information. If you do, the refund can be reissued to a new account or mailed as a check within one to two weeks. If you don't contact them, the IRS will mail a check automatically after 120 days, but that adds several more weeks to your wait.
Key Takeaways
- A returned refund sits with the IRS for up to 120 days while they wait for you to contact them with a corrected account or mailing address.
- You can check the status of a returned refund using the IRS Where's My Refund tool at IRS.gov/refunds, which will show "returned" or "being processed" once the bank sends it back.
- The fastest way to get your money is to call 1-800-829-1040 and provide a corrected bank account and routing number, or request a check to be mailed instead.
- If you don't contact the IRS within 120 days, they will mail a check to the address on your return, which can take several additional weeks to arrive.
- A returned refund does not affect your tax filing status or trigger an audit — it is a purely mechanical issue between your bank and the IRS.
How to check whether your refund was actually returned
The first step is to confirm that your bank actually rejected the deposit. Go to IRS.gov/refunds and use the Where's My Refund tool. Enter your Social Security number, filing status, and the exact refund amount from your return. The tool will show you the current status of your refund.
If the refund was returned, the status will say something like "returned" or "being processed" along with a date. The IRS typically updates this information within one to two weeks after the bank sends the money back. If the status still shows "approved" or "sent," the refund may not have been returned yet — it can take time for the bank's rejection to reach the IRS. Check again in a few days.
You can also call the IRS directly at 1-800-829-1040. Have your Social Security number, filing status, and the refund amount ready. The IRS phone lines are busiest from January through April, so expect wait times of 30 minutes to several hours during tax season. The representative can tell you immediately whether the bank rejected your refund and what reason the bank gave.
Why banks reject tax refunds
Banks reject refunds for a handful of specific reasons, and knowing which one applies to you determines how to fix it. The most common cause is a wrong account or routing number on your tax return. If you transposed digits, used an old account number, or copied the routing number incorrectly, the bank will refuse the deposit and send it back to the IRS.
A closed account is another frequent reason. If you filed your return with a bank account that you closed before the refund arrived, the bank will reject it. This happens often when people change banks between filing and receiving the refund. Name mismatches also cause rejections — if the name on your tax return does not exactly match the name on the bank account, some banks will reject the deposit. This is less common than it used to be, but it still happens.
Less often, a refund is rejected because the account has been flagged for fraud or is subject to a levy by another government agency, such as a child support enforcement office or state tax authority. In these cases, the bank is legally required to reject the deposit. When you call the IRS, they can tell you which reason applies to your refund.
How long the IRS holds a returned refund
Once your bank returns the refund to the IRS, the IRS holds it for up to 120 days while waiting for you to contact them with corrected information. This is not a waiting period you have to sit through passively — it is a window during which you can take action to speed things up. If you contact the IRS within those 120 days with a corrected account number and routing number, they can reissue the refund to the new account within one to two weeks.
If you request a check instead, the IRS can mail it within the same timeframe. If you do not contact the IRS within 120 days, they will automatically mail a check to the address on your return. This check will arrive by mail, which typically takes two to three weeks from the time the IRS sends it. You will not receive a notice that the check is coming — it will simply arrive in your mailbox, so the total wait from rejection to receipt can stretch to four or five months.
Correcting your bank information and resubmitting
To reissue your refund to a corrected bank account, you need to contact the IRS directly. You cannot correct the information through your online tax account or by filing an amended return. Call 1-800-829-1040 and tell the representative that your refund was returned by your bank and you want to provide a corrected account number.
Have the following information ready: your Social Security number, the routing number of the correct bank account, the account number, the account type (checking or savings), and the name on the account exactly as it appears at the bank. The IRS representative will verify your identity and update your file. The refund will then be reissued to the new account within one to two weeks.
If you no longer have access to the account where you originally wanted the refund deposited, or if you have closed all of your bank accounts, request a check instead. Tell the IRS representative that you want the refund mailed as a check to the address on your return. The check will be issued within one to two weeks and should arrive within two to three weeks after that.
Requesting a check by mail instead of a bank deposit
If you prefer not to provide corrected bank information, or if you are not sure what went wrong, you can request that the IRS mail a check instead. This is often the simplest option if you are uncomfortable sharing banking details over the phone or if you want to avoid the risk of another rejection.
Call 1-800-829-1040 and ask the representative to issue your refund as a check. Confirm that the mailing address on your return is current. The IRS will mail the check to that address within one to two weeks. Standard mail delivery typically takes two to three weeks, so plan for the check to arrive within three to four weeks total.
Once the check arrives, deposit it at your bank as you would any other check. There is no time limit on cashing a federal tax refund check, so you do not have to rush to deposit it immediately. You can also deposit it at a different bank than the one you originally specified on your return.
What happens if you miss the 120-day window
If you do not contact the IRS within 120 days of the refund being returned, the IRS will automatically mail a check to the address on your return. You do not have to do anything — the check will come on its own. However, this automatic process takes longer than contacting the IRS yourself.
The IRS typically mails the check about 120 days after the return is received, and mail delivery adds another two to three weeks. In total, you could be waiting four to five months from the time your refund was originally rejected before the check arrives in your mailbox. If you have already waited several months and have not received a check, use the Where's My Refund tool again or call 1-800-829-1040 to confirm that the check was mailed and to the correct address.
If your address has changed since you filed, you may need to contact the IRS to update it and request that the check be reissued to your new address. The IRS can reissue a check if the original one was lost or if you moved and did not receive it.
Protecting yourself from future rejections
To avoid this situation on next year's return, double-check your bank account and routing numbers before you file. Your routing number is printed on the bottom left of any check from your account. Your account number is printed on the bottom center of the check, after the routing number. Write both down and verify them against your bank's website or a recent statement before entering them on your return.
If you are filing electronically, many tax software programs will validate your routing and account numbers before you submit. Pay attention to any warnings the software gives you. If you are filing on paper, take extra time to verify the numbers by hand. If you change banks between filing and receiving your refund, contact the IRS proactively with your new account information. Do not wait for the refund to be rejected. Call 1-800-829-1040 and provide the updated details so the IRS can reissue the refund to the correct account before the bank ever sees it.
Frequently Asked Questions
Will a returned refund affect my tax filing or trigger an audit?
No. A returned refund is a mechanical issue between your bank and the IRS — it has nothing to do with the accuracy of your return or your tax filing status. The IRS does not flag returned refunds for audit or investigation. You will not face any penalties or consequences simply because your bank rejected the deposit.
Can I deposit the refund check at a different bank than the one I originally specified?
Yes. Once the IRS issues a check, you can deposit it at any bank where you have an account. You are not required to use the bank account you originally listed on your return. This is one reason why requesting a check can be simpler than trying to correct your banking information.
What if I never receive the check after 120 days?
Use the Where's My Refund tool to confirm that the check was mailed and to which address. If the address is incorrect, call 1-800-829-1040 to update it and request that a new check be issued. If the address is correct but you still have not received the check after four weeks, contact the IRS to report it as lost and request a replacement.
Can I have my refund deposited to someone else's bank account?
No. The IRS will only deposit a refund to a bank account in the name of the person who filed the return. If your name does not match the account name, the bank will reject it. You must provide an account in your own name, or request a check instead.
How do I know if my bank rejected the refund or if the IRS never sent it?
Use the Where's My Refund tool. If the status shows "returned" or "being processed," your bank rejected it. If the status shows "approved" or "sent" but you never received the money and it has been more than a week, call 1-800-829-1040 to ask whether the IRS attempted to deposit it and whether the bank rejected it.