The IRS is implementing procedures to identify and recover misdirected direct deposit refunds.
The regulations (T.D. 9940) define a misdirected direct deposit refund as any refund of an overpayment of tax disbursed as a direct deposit but is not deposited into the account designated on the claim for refund to receive the direct deposit refund.
Under the final regulations, a taxpayer or an authorized representative may report to the IRS that the taxpayer never received a direct deposit refund and request a replacement refund. Learn more.