How Long Does It Take to Send a Refund Rejected by the Bank?

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How Long Does It Take to Send a Refund Rejected by the Bank?

The Internal Revenue Service (IRS) has an online tool where taxpayers can check the status of their refund. The IRS website says that refunds are typically issued 21 days after receiving a return. Therefore, there is no math error, no duplicate filer, and the taxpayer doesn’t owe any money. 

If you have been waiting for more than four weeks and still haven’t received your refund, contact the IRS if you haven’t received a notification in that time frame.

This post will go over all of those steps in detail, with some examples to show how it is done. Many taxpayers have been asking me lately how long the IRS takes to process a refund, which is a question I get every year.  

Tax refund — How to apply?

The IRS can send your refund in 21 days, as long as you are not overlooked by the computer or if you don’t owe any money. If you haven’t filed for a tax refund, here is the step by step process that you can follow:

Step 1: Decide on how you want to file (phone, online, or mail)

If you want to file by phone, you need to give them your SSN and “Yes” or “No” for an answer. Next up was filing online – this is the only method that requires a math error.

Step 2: Confirm your math error 

The system confirms that the math error is correct and needs to be reconciled.

Step 3: Get an approval notice for your refund

The computer scans for a match and sends you a message saying “Approved.” This does not mean that it’s issued, but just that all the appropriate checks have been made, and you are approved to receive the check shortly.

Step 4: Select a refund date

This step is where many people miss out. After you have gotten the approval notice, you can select a refund date. This is the date that you will be receiving your check. If you don’t want to wait, you can select a different refund date and not have it sent out right away.

Step 5: Receive the notification of your refund

This is where many people get frustrated and miss out on their real opportunity to receive a check. You will receive an email or letter letting you know that the check was successfully issued and it’s on its way to you.

Issued Tax refund but not deposited in the bank — Is my application rejected?

Tax refunds are not an instantaneous process. For example, if you’ve issued a tax refund, but it is not in your account yet, or maybe it’s been rejected. People usually panic because they’re afraid their return will be lost and they will never see the day that they were expecting their money. 

So what should you do in this situation? Of course, going after your money from the bank itself isn’t always necessary. However, there are still certain things that can be done to receive your money as soon as possible.

The first thing to do is to check in with the bank. This will likely be the first step in getting your money back from the bank, and it is a big one. If you issue a refund and it ends up being rejected, you need to know that your problem as an IRS agent may have something to do with the bank you are working with.

The next step is to check on your account online. If at any point an account status shows that there is an error or even a pending status, you need to know that there’s more work for you to do before you can get your money back.

If you haven’t already, you need to call the bank. The most important thing here is to inform the bank who you are and that you are a tax refund agent. If it’s been a week and your money isn’t back in your account. 

The next step is something that not many people do, but it’s very important: You need to call the IRS. With federal tax returns, there are set protocols that have to be followed when issuing refunds and rejecting them from an account.

Direct deposit rejected by IRS | What to do?

Direct deposit is a wonderful feature when it works. It makes you feel your money is being taken care of and provides instant access to your funds with no worries. 

Unfortunately, the IRS doesn’t always cooperate. According to their website, “The IRS has the right to refuse or revoke direct deposit authorization.” They have made this news item famous on their site when they reject some donations, but what if they audit you? What if they refused your direct deposit request because they found an error in your tax return?

It’s safe to say that dealing with the IRS can be highly stressful-especially when you aren’t sure what’s going on. The first thing that you need to do is verify that the IRS rejected the return. You can usually do this when you log in to your account. The IRS will state specifically the reason for rejecting your claim, giving you some peace of mind.

If there is a problem with your return, then you have a chance to correct it. If the problem is trivial and doesn’t affect the outcome of your audit, then you should contact them immediately and get it straightened out as quickly as possible. There’s nothing worse than waiting for an audit to be completed when nothing major is wrong. They will probably expect this correction to be made within a few weeks while they conduct their investigation of your claim.

If you owe money to the IRS, they will most likely mail you a bill. If this happens, make sure that you arrange to pay them as soon as possible because they aren’t known for giving out extensions. Paying in person is usually the best option to avoid fees if you are paying with a check or a credit card.

You will probably be getting more than one bill from the IRS, so be sure that you keep everything organized, and straightforward-it will save your nerves later on down the road. If there is anything that you don’t understand about your bills, don’t hesitate to contact them directly.