Your bank can send a tax refund back to the IRS, and the IRS will hold it while they figure out where to send it next
When your bank returns a tax refund, the IRS does not immediately resend it to a different account. Instead, the IRS receives the returned deposit, records it as undelivered, and holds the money while they investigate why the deposit failed. The refund stays in IRS custody until you contact them with corrected information or they exhaust their attempts to reach you.
A returned refund typically means one of three things: your account number was wrong on your tax return, your account was closed before the deposit arrived, or your bank rejected the deposit for a reason specific to your account (fraud hold, account frozen, or a mismatch between the name on the return and the name on the account). The IRS does not automatically try your old address or send a check instead—you have to tell them what went wrong and how to fix it.
Key Takeaways
- A returned refund sits with the IRS until you contact them with corrected banking information or request a check instead.
- The IRS will not send a replacement check on its own; you must report the return and ask for a new delivery method.
- Contact the IRS using the phone number on your most recent notice, through your online IRS account, or by mail with Form 3911 if you have a returned refund notice.
- A returned refund can take an additional two to four weeks to reprocess once you provide corrected information.
- If your bank rejected the deposit because of a closed account or wrong routing number, you will need to verify the correct details before resubmission.
Why banks return tax refunds
Banks return deposits for specific reasons, and the IRS receives a code that explains why. The most common reasons are an incorrect account number, a closed account, or a name mismatch between your tax return and your bank account. Some banks also return deposits if they suspect fraud or if your account has been flagged for other reasons—a frozen account due to a debt offset, for example, or a hold placed by law enforcement.
Less commonly, a bank will reject a deposit because the routing number on your return does not match the bank's current routing number. Banks sometimes change routing numbers during mergers or reorganizations, and if your return used an outdated number, the deposit bounces. You will not see this error on your end; the bank sends a return code to the IRS, and the IRS records it.
How to find out your refund was returned
The IRS notifies you by mail when a refund deposit has been returned. You will receive a notice (usually Form 8805 or a similar letter) explaining that the deposit failed and asking you to contact the IRS with corrected information. This notice arrives at the address on your tax return, so if you have moved, it may take longer to reach you.
You can also check the status of your refund through the IRS website using the Where's My Refund tool on IRS.gov. If your refund was returned, the tool will show a status message indicating a delivery problem and instructions to contact the IRS. If you have an IRS online account, you can also see notices and correspondence there.
Steps to report a returned refund and request redelivery
Contact the IRS as soon as you learn your refund was returned. You have three main options: call the IRS, use your online IRS account, or mail Form 3911 (Application for Taxpayer Assistance Order) along with your returned refund notice.
If you call, use the phone number on your returned refund notice or the general IRS number (1-800-829-1040). Have your Social Security number, the tax year in question, and the refund amount ready. Tell the IRS representative that your refund was returned and provide the correct banking information if you want to try a direct deposit again, or ask them to issue a check instead.
If you use your online IRS account, you can upload a corrected Form 8888 (Allocation of Refund) with the correct account and routing numbers. The IRS will process the change and resubmit the deposit within two to four weeks.
If you mail Form 3911, include a copy of your returned refund notice, your corrected banking information, and a statement explaining why the original deposit failed. Mail it to the IRS address shown on your notice. Processing by mail takes longer—typically four to six weeks.
Choosing between direct deposit and a check
After a returned deposit, you can request a check instead of trying direct deposit again. A check is safer if you are unsure about your banking information or if your account has ongoing issues. The IRS will mail the check to your address on file, and it typically arrives within two to three weeks of your request.
If you want to try direct deposit a second time, make absolutely certain the account and routing numbers are correct. Call your bank directly and confirm both numbers before you contact the IRS. A second returned deposit will delay your refund further and may require additional IRS investigation.
How long reprocessing takes
Once you report the return and provide corrected information, the IRS typically reprocesses your refund within two to four weeks. If you request a check, add another week or two for mailing. The total time from the original return to receiving your money can stretch to eight weeks or longer, depending on when you discovered the problem and how quickly you contacted the IRS.
If the IRS cannot reach you and you do not respond to their notice within a certain period, they may hold the refund indefinitely. You can still claim it later by contacting the IRS or filing an amended return, but the longer you wait, the more paperwork you may need to provide as proof.
What to do if your account was closed
If your bank account was closed before the refund arrived, you cannot redeposit to that account. Request a check instead, or provide the IRS with a different account at the same bank or a different bank entirely. Make sure the new account is in your name and has been open long enough to receive deposits (most banks require at least a few days).
If you opened a new account after filing your return, the routing and account numbers will be different. Confirm both with your bank before giving them to the IRS. Some people make the mistake of providing a savings account number when they meant to provide a checking account number, or vice versa—the IRS will reject a deposit to the wrong account type.
Frequently Asked Questions
Can the IRS send my refund to a different bank account than the one I originally provided?
Yes. Once you report the return, you can provide a completely different account number and routing number, at a different bank if needed. The account must be in your name and must be a U.S. bank account. The IRS will resubmit the deposit to the new account within two to four weeks.
Will I owe interest or penalties because my refund was returned?
No. A returned refund is not your fault, and the IRS does not charge interest or penalties on refunds that are delayed due to delivery problems. You will receive the full refund amount once it is successfully deposited or mailed to you.
What if I never received the IRS notice about the returned refund?
Check the Where's My Refund tool on IRS.gov to see if a return is recorded. If you see a message about a delivery problem, contact the IRS by phone or mail to provide corrected information. If you have an online IRS account, check your notices section there as well. The IRS may have sent the notice to an old address if you moved.
How many times can the IRS try to deposit my refund before they give up?
The IRS typically attempts one direct deposit. If it fails, they send you a notice and wait for you to respond with corrected information or a request for a check. They do not automatically retry the same account multiple times. After you provide new information, they will attempt one deposit to the new account.
Can I request my refund by check if I am worried about giving my bank account information?
Yes. You can always request a check instead of direct deposit, even if you have not had a returned refund. Contact the IRS and ask them to issue a check for your refund. The check will be mailed to your address on file and typically arrives within two to three weeks of your request.