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Bank Rejected My Federal Tax Refund?

Credit Card Debt discussions & tips

Bank Rejected My Federal Tax Refund?

Postby irelan66 » Mon Mar 26, 2012 3:22 pm

I called several days ago and spoke with the people at Walmart Prepaid Debit Card and had it set up so that my husband and I both were on the card. Today our Federal Tax Refund was direct deposited and rejected by the bank. When I called the Walmart Prepaid Debit Card people tell me that I was not added to the account and then they tell me that I was added to a card but a new one. I have tried calling the Irs numbers to find out if I can have it direct deposited to my bank but I can not get through to speak to anyone. I read that if your Tax Refund is rejected that the Irs will mail you the check. Does anyone know how long it takes for you to get the check in the mail? I live in Charleston, WV.
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Bank Rejected My Federal Tax Refund?

Postby alai » Mon Mar 26, 2012 3:37 pm

I, too am experiencing the same exact issue as you. I had called Walmart Money Card before ever filing my tax return and told them that the return is a joint return with my Wife's name on it as well; they said that it would not be a problem as long as my name was on the direct deposit as well. I went ahead and put my account & routing number in and filed. My returned was accepted as of 01/25/2012 and WMR stated that my refund would be direct deposited on 02/01/2012. Low and behold, no money in our account. I continued to check and nothing. I then called Walmart Money Card CS and it automatically told me that my refund was rejected and would be returned to the IRS. I spoke to a woman and argued with her for an hour based on what they had told me. She agreed to transfer me to a "Loss Department" in which I had to wait on hold for 25 minutes. Finally getting to talk to someone, she told me that she would issue a request to have the direct deposit examined and if it was addressed to my name as well, they would not send the direct deposit back to the IRS and would credit out account. She also stated that they hold rejected funds for 48 hours after rejection. She told me to call back tomorrow (02/02/2012) to see what they have figured out. It's definitely aggravating being that I inquired about this before doing so and was assured it would be no problems. I even spoke with the IRS and they too were shocked and how insane it was that the refund was rejected based on what had happened.

The short of it, if Walmart Money Card isn't notified about an issue within 48 hours of the rejection of the direct deposit, the funds will be returned to the IRS. After speaking with the IRS, they had informed me that if this does happen, they will cut a paper check and I (should) receive it within 4-6 weeks. I asked if that was just a guideline to go by and perhaps if it happened quicker sometimes and she said no, it usually takes about a month and no sooner. Sorry for the bad news.. I too am extremely aggravated and if tomorrow doesn't bring good news, I'm going to start at the top with Green Dot, GE MoneyBank and Walmart Money Card and let them know what I think.
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Bank Rejected My Federal Tax Refund?

Postby deven » Mon Mar 26, 2012 3:44 pm

@ Ed.D Thank you for this info,i am going through the same problem right now and your advice really helped.
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Bank Rejected My Federal Tax Refund?

Postby bramm » Mon Mar 26, 2012 3:46 pm

I just called the IRS if both names of the joint Federal Refund is on the check and only 1 name is on the checking account it should be rejected by the bank and a IRS will issue a check instead. I have contacted our bank and this is correct. Especially if it is not a joint account. My estranged husband agreed to give me half of our tax refund and now he is refusing to do so. So his checking account has been flaged and it should be returned to IRS. It will take 3 to 6 weeks to get the paper check.
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Bank Rejected My Federal Tax Refund?

Postby lind » Mon Mar 26, 2012 3:56 pm

If an ACH deposit is rejected for any reason, the IRS will re-flow your refund for payment by check. Allow 4 to 6 weeks from the original ACH transmission date for the process to complete.

Normally a tax refund deposit should be accepted as long as at least ONE of the names on the transaction matches with the name on the account. A joint account is NOT needed.
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Bank Rejected My Federal Tax Refund?

Postby fyfe » Mon Mar 26, 2012 4:00 pm

If your bank rejected the direct deposit, a paper check will be issued. However, it appears from your question that the bank did not reject it, but instead put it in a different account. Sounds like a problem you should work out with the bank. It will take them at most a day or so to correct it.
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Bank Rejected My Federal Tax Refund?

Postby etienne » Mon Mar 26, 2012 4:06 pm

I'm not sure about the answer your bank gave you, however, many IRS early filers have (or may have) their refunds delayed. See IRS website below.
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Bank Rejected My Federal Tax Refund?

Postby bennie » Mon Mar 26, 2012 4:12 pm

It will take two to three weeks to get your check in the mail.
Have you checked where is my refund at irs.gov? perhaps you will find more info on the website.
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Bank Rejected My Federal Tax Refund?

Postby manfred30 » Mon Mar 26, 2012 4:13 pm

That's messed up on Walmart's part. Next time sign up for Visa debit card threw Turbo tax. They offer one.

You will get a check in the mail in about 4 weeks.

Sorry that happened
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Bank Rejected My Federal Tax Refund?

Postby birde35 » Mon Mar 26, 2012 4:24 pm

It should take 3-6 weeks for you to get your check in the mail.
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