I got a letter from the IRS saying they couldn't process my return because my financial institution rejected the refund. But I owed taxes this year and already paid.. The letter has a link to update my bank info but makes me upload my driver's license and stuff.. Is this a scam? Or do I just simply ignore it?
Got a IRS letter saying they couldn't direct deposit my returns but I owed money and already paid..
byu/Midnight_Thoughts77 intax
Posted by Midnight_Thoughts77
5 Comments
Is it possible you overpaid on what you owe and they’re trying to refund you the difference? I have seen that happen more than once.
The IRS also makes mistakes, and it could have been sent to you in error.
Check your online account at irs.gov (if you don’t have one I highly recommend setting one up) to see if there’s any balances or notices.
These are automated letters sometimes sent to people unnecessarily. I’ve had several clients get them for no reason. If you aren’t expecting a refund, I wouldn’t do anything.
Check your transcripts. If it doesn’t show a refund, just ignore the letter. Your online account should also have a copy of the letter to help confirm if it is at least legitimate!
Basically this notice relates back to the executive order from March of 2025 about modernizing the IRS payments system (implementation has been about as you would expect).
In essence they want back info so they can stop issuing checks for refunds and to stop receiving checks when money is due (to save money, increase efficiencies, etc.).
If you’ve already paid (and just as importantly can prove you paid) you’re probably safe to ignore the letter. I say “probably” given that it assumes the payment was posted to the correct account and year.
From a practical standpoint, I’d still recommend setting up your account with the IRS and the whole IDme thing they have since it’s good to check your records etc. If the account shows no balance due you can either provide the information then or wait until your next tax return.
These letters are sometimes sent out before your payment has been processed. My guess this is what is happening here.