How to recover a refund deposited to the wrong account
If the IRS deposited your refund into a bank account that is not yours, you have two paths: contact your bank to reverse the deposit, or contact the IRS to intercept the funds before the receiving bank processes them. Speed matters here — the sooner you act, the better your chances of recovery. A bank can reverse a misdirected deposit only if it has not yet cleared, which typically means within one to three business days. After that, the receiving bank is unlikely to reverse it without a court order.
The IRS can intercept funds that have already cleared, but only if you contact them quickly and provide the correct account information. This process is slower and less certain than a bank reversal, but it is your option if the deposit has already posted to the wrong account.
Key Takeaways
- Contact your bank immediately if you notice the deposit went to the wrong account — reversals are easiest within one to three business days of the deposit posting.
- If your bank cannot reverse the deposit, call the IRS at 1-800-829-1040 to report the error and request an intercept of the funds from the receiving bank.
- You will need the routing number and account number of the wrong account, plus proof that the account is not yours, to request an IRS intercept.
- The receiving bank is not required to return funds that have fully cleared, so the IRS intercept process can take weeks and may not succeed.
- File an amended return or contact the IRS if you never receive your refund after reporting the error.
Contact your bank first for an immediate reversal
Call your bank's customer service line as soon as you discover the error. Tell them the refund was deposited to an account that does not belong to you and ask them to reverse the transaction. Your bank can do this only if the deposit has not yet cleared — meaning the funds are still in a holding status and have not been made available to the account holder. This window is typically one to three business days from when the deposit was received, though it varies by bank.
Your bank will need the deposit amount, the date it posted, and ideally the routing number of the account that received it. If you have access to your online banking, you can often see the exact date and time the deposit cleared. Provide this information to your bank and ask them to initiate a reversal immediately. Most banks can complete this within one business day if the deposit has not cleared.
Ask your bank for a confirmation number or reference number for the reversal request. Keep this for your records. If your bank confirms the reversal was successful, the funds will return to the IRS, and you will receive a new deposit to your correct account within one to two weeks.
Request an IRS intercept if the deposit has already cleared
If your bank tells you the deposit has cleared and cannot be reversed, contact the IRS directly at 1-800-829-1040. Tell them your refund was deposited to the wrong account and provide the following information: the routing number and account number of the account that received the deposit, the amount of the refund, and the date it was deposited. The IRS can request that the receiving bank return the funds, but only if you report the error promptly.
The IRS will file what is called a reversal request with the receiving bank. This is not the same as a bank reversal — it is a formal request from the federal government asking the bank to return funds that were sent in error. The receiving bank is not legally required to honor this request if the funds have fully cleared and the account holder has already received them, but most banks will comply with an IRS reversal request to avoid regulatory issues.
The intercept process typically takes two to four weeks. The IRS will send you a letter confirming that the reversal request was filed and providing a case number. Keep this number and use it to track the status of your request. You can call the IRS again and reference this number to ask for an update.
What happens if the receiving bank refuses to return the funds
If the receiving bank does not comply with the IRS reversal request — which can happen if the account holder has already spent the money or if the bank claims it cannot locate the funds — you have limited options. The IRS cannot force a bank to return funds that have been fully processed and withdrawn. In this case, you will need to file a claim with the IRS for the missing refund.
Contact the IRS again and ask to file a claim for refund based on the misdirected deposit. You will need to provide documentation that the deposit went to the wrong account: a screenshot of your bank statement showing the deposit did not arrive in your account, the confirmation number from your bank's reversal attempt, and the case number from the IRS reversal request. The IRS will review your claim and, if approved, issue a new refund to your correct account.
This process can take several months. In the meantime, if you filed your return expecting the refund and have not received it, you may want to file an amended return or contact the IRS to explain the situation. Do not assume the refund was never processed — the IRS records show it was sent, and you have documentation of the error.
Prevent this from happening on your next return
When you file your next tax return, double-check the routing number and account number you enter for direct deposit. The most common cause of misdirected refunds is a transposed digit in the routing number or account number. Verify both numbers against your bank statement or by logging into your online banking portal.
If you use tax preparation software, the software will often verify your bank information against a database of valid routing numbers. If you file by mail or with a tax professional, ask them to read back the routing and account numbers to you before submitting the return. Many tax professionals will also verify the numbers by calling the bank or checking the bank's website.
Keep a record of the routing number and account number you used on your return. If you change banks or open a new account, update your information with the IRS before filing your next return. You can do this by filing an amended return or by contacting the IRS directly.
Track the status of your refund after reporting the error
After you report the misdirected deposit to the IRS, you can track the status of your refund using the IRS "Where's My Refund?" tool on the IRS website (irs.gov). Enter your Social Security number, filing status, and the refund amount. The tool will show you whether the IRS has received your return, whether the refund has been processed, and whether it has been sent to your bank.
The status will update to show that a reversal request has been filed or that a new refund has been issued. If the status does not change after two weeks, call the IRS again and reference your case number. Ask for a supervisor if the representative cannot provide an update.
If the IRS issues a new refund to your correct account, it will typically arrive within one to two weeks of the new deposit date. If you do not receive it within this timeframe, contact your bank to confirm the deposit was received and posted correctly.
Frequently Asked Questions
Can the person who received my refund keep the money?
No. If the funds were deposited to their account by mistake, the bank is required to return them when the IRS or your bank requests a reversal. However, if the account holder has already withdrawn the money and spent it, the bank may claim it cannot recover the funds. In that case, you file a claim with the IRS for a replacement refund.
How long does it take to get my money back?
A bank reversal takes one to three business days if the deposit has not cleared. An IRS intercept takes two to four weeks. If the receiving bank refuses to return the funds and you file a claim with the IRS, expect two to three months for the IRS to review and approve your claim and issue a replacement refund.
Do I need to file an amended return if my refund went to the wrong account?
No. The IRS has a record that your return was filed and processed. You only need to report the misdirected deposit and request a reversal or intercept. File an amended return only if you need to change information on your original return for a different reason.
What if I do not know which account the refund went to?
Contact the IRS and provide the date you expected to receive the refund. The IRS can look up the account information from your return and tell you where the deposit was sent. You can then contact that bank to request a reversal or provide the information to the IRS for an intercept request.
Can I stop the refund before it is deposited if I notice the error in time?
If you notice the error before the IRS processes your return, you can file an amended return with the correct account information. However, once the IRS has approved your return and sent the refund, you cannot stop the deposit. Your only option is to request a reversal or intercept after the deposit is made.