gfizer Posted February 10, 2021 Report Share Posted February 10, 2021 Former client called saying he received a letter from his bank saying that he needed to update his direct deposit account information with the IRS to receive future stimulus. He retired a few years ago and draws only social security benefits and accordingly, has not had to file a return since 2017. I told him I would assume that the direct deposit information the IRS has been using for stimulus payments was coming from SSA and that he should check with SSA to verify that they had the correct information (he changed banks in 2018 and remembers going online on SSA to change the info at that time but has since changed account numbers within the same bank and can't remember if he updated it again at that time). He then called back to tell me that he called the IRS and they told him to file Form 1040-SR which I can do but I still don't understand how that will update his bank account info since there will not be a refund or balance due on the return. I would assume that the bank account info would not be transmitted with the efile if there was no refund or balance due. I can paper file it with the new account info written in but I still don't think there is any guarantee it would be processed. Thoughts or ideas? Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 10, 2021 Report Share Posted February 10, 2021 I am wondering if you actually saw the letter, or he just told you what it said over the phone. My GUESS is that he did not get one or both of the stimulus payments from the IRS for last year because his account numbers was incorrect. If that is the case, the 2020 tax return is the place that is reconciled and he would file to get the recovery rebate credit now, which would result in a refund and the bank information being transmitted with the return when you electronically file. I would put in the correct amount of his social security, and any interest income he has because I don't think you can transmit a return that has NO income whatsoever. You may need to put a $1 entry in somewhere, I am not sure. I have not actually had to file one for the recovery rebate credit yet. 4 Quote Link to comment Share on other sites More sharing options...
gfizer Posted February 10, 2021 Author Report Share Posted February 10, 2021 7 minutes ago, Gail in Virginia said: I am wondering if you actually saw the letter, or he just told you what it said over the phone. My GUESS is that he did not get one or both of the stimulus payments from the IRS for last year because his account numbers was incorrect. If that is the case, the 2020 tax return is the place that is reconciled and he would file to get the recovery rebate credit now, which would result in a refund and the bank information being transmitted with the return when you electronically file. I would put in the correct amount of his social security, and any interest income he has because I don't think you can transmit a return that has NO income whatsoever. You may need to put a $1 entry in somewhere, I am not sure. I have not actually had to file one for the recovery rebate credit yet. I did not physically see the letter but I asked him to verify the amounts he received for stimulus and he said he received $1200 on the first one and $600 on the second one. He read the letter to me and the bank acknowledges that they had automatically transferred the payments from the old account to the new one but that any future payments to the old account will be rejected. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 10, 2021 Report Share Posted February 10, 2021 There are scam letters out there trying to get people's bank info. 2 Quote Link to comment Share on other sites More sharing options...
gfizer Posted February 10, 2021 Author Report Share Posted February 10, 2021 4 minutes ago, Lion EA said: There are scam letters out there trying to get people's bank info. We live in a VERY small town. This letter is obviously legit and it doesn't ask for any information, only tells him to update his info with the IRS and doesn't tell him how to go about doing that so I'm pretty sure it's not a scam 1 Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted February 10, 2021 Report Share Posted February 10, 2021 But if he's already received the $1,200 and $600 then IRS already has the correct bank details. My guess is the letter is just an FYI, just in case, you might need to ...... Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 10, 2021 Report Share Posted February 10, 2021 40 minutes ago, gfizer said: bank acknowledges that they had automatically transferred the payments from the old account to the new one but that any future payments to the old account will be rejected Well, that seems to be the heart of the matter, but the only way to give the irs new bank info would be to make an estimated payment for 2020 (using direct pay) and then file for a refund. And this is just for future stimulus payments, so it should be worthwhile. 3 Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 10, 2021 Report Share Posted February 10, 2021 As far as changing your direct deposit account info other than when filing your tax return, all a quick search found was to call the IRS at #-###-###-1040. Quote Link to comment Share on other sites More sharing options...
gfizer Posted February 10, 2021 Author Report Share Posted February 10, 2021 13 minutes ago, Lynn EA USTCP in Louisiana said: But if he's already received the $1,200 and $600 then IRS already has the correct bank details. My guess is the letter is just an FYI, just in case, you might need to ...... Actually they are using the old account number within the same bank, apparently. The bank has been transferring it into the correct account as a courtesy but now says they won't do it in the future. Since he hasn't filed a tax return since 2017, I still think the problem lies with SSA and that he should make sure his account information is updated with them. 3 minutes ago, cbslee said: As far as changing your direct deposit account info other than when filing your tax return, all a quick search found was to call the IRS at #-###-###-1040. Yeah that's what I found too and when he did they told him to file the 1040-SR. Quote Link to comment Share on other sites More sharing options...
Max W Posted February 10, 2021 Report Share Posted February 10, 2021 The bank account info can be changed at ssa.gov; or the form can be filled out and taken to the nearest SS office. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 10, 2021 Report Share Posted February 10, 2021 29 minutes ago, Max W said: The bank account info can be changed at ssa.gov; or the form can be filled out and taken to the nearest SS office. But it sounds like SSA doesn't forward the bank info to IRS. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 10, 2021 Report Share Posted February 10, 2021 1 hour ago, cbslee said: As far as changing your direct deposit account info other than when filing your tax return, all a quick search found was to call the IRS at #-###-###-1040. Sure, but who can get through to the IRS these days, and do we really want people calling for every little thing, when there are those with real IRS problems? I tried to call practitioner line during the snow storm and got a message to try again later. I thought all the preparers in the storm would be busy with snow related activities, and not calling the IRS. Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 10, 2021 Report Share Posted February 10, 2021 Exactly, since no other option was given except calling the generic number Quote Link to comment Share on other sites More sharing options...
Max W Posted February 10, 2021 Report Share Posted February 10, 2021 1 hour ago, Abby Normal said: But it sounds like SSA doesn't forward the bank info to IRS. Perhaps not for the stimulus payments, but what about the monthly SS checks? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 10, 2021 Report Share Posted February 10, 2021 54 minutes ago, Max W said: Perhaps not for the stimulus payments, but what about the monthly SS checks? Sure, but those checks come from different agencies. IRS needs a website to submit bank info, similar to Social Security's site. Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 11, 2021 Report Share Posted February 11, 2021 If you just want this to go away, while making sure the IRS has the right bank info, here's what I'd have the client do. 1. Make a $1 estimated payment using Direct Pay. 2. File a 1040-SR and claim that $1 refund with direct deposit. 3. Change the official account with the SSA, too, before the bank stops doing the "courtesy" of forwarding the funds to the right account. It will be over faster, and hurt FAR less, than being on "ignore" with the IRS for hours on end (with that gawdawful muzak in your ear) only to be told to do something similar. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 12, 2021 Report Share Posted February 12, 2021 2 hours ago, Catherine said: If you just want this to go away, while making sure the IRS has the right bank info, here's what I'd have the client do. 1. Make a $1 estimated payment using Direct Pay. 2. File a 1040-SR and claim that $1 refund with direct deposit. 3. Change the official account with the SSA, too, before the bank stops doing the "courtesy" of forwarding the funds to the right account. It will be over faster, and hurt FAR less, than being on "ignore" with the IRS for hours on end (with that gawdawful muzak in your ear) only to be told to do something similar. I checked the IRS direct pay and credit card options, and at this point in time the taxpayer can no longer make a 2020 estimate through the IRS site, so in order to have a payment on the 2020 return, that would leave the only options to either make a 4th quarter 2020 estimated payment late by paper filing it, or to make an extension payment via the IRS site. I didn't check the EFTPS site to see if it would still accept estimated payments for last year. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 12, 2021 Report Share Posted February 12, 2021 16 minutes ago, cbslee said: It's been some years since I checked into the details. However at that time the actual processing of EFTPS payments was subcontracted to several large banks, who did not pass on the payor's account information to the IRS . That's not what the above posters are hoping for. They want to make a payment for 2020 that will show up on a return to force a refund so that they can enter the direct deposit information on the return itself. Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 12, 2021 Report Share Posted February 12, 2021 Copied from EIP Information Center FAQ D5: "Q D5. If I filed my 2019 tax return and paid my taxes electronically from my bank account using an electronic funds withdrawal, Direct Pay, or Electronic Federal Tax Payment System (EFTPS)) will the IRS send my Payment to the account I used? (updated November 5, 2020) A5. No, the IRS will not send Payments to accounts used to make a payment to the IRS. If we do not have bank information for you, your Payment will be mailed to the address we have on file for you." Quote Link to comment Share on other sites More sharing options...
JoeFreitag Posted February 12, 2021 Report Share Posted February 12, 2021 Last year you could enter your banking information for these payments. My software allows that again this year if you actually file a return, does your software? Quote Link to comment Share on other sites More sharing options...
gfizer Posted February 12, 2021 Author Report Share Posted February 12, 2021 1 hour ago, JoeFreitag said: Last year you could enter your banking information for these payments. My software allows that again this year if you actually file a return, does your software? ATX allows the entry of bank account information but I don't believe it would be transmitted with an electronically filed return where there is no refund or balance due. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 12, 2021 Report Share Posted February 12, 2021 2 hours ago, JoeFreitag said: Last year you could enter your banking information for these payments. My software allows that again this year if you actually file a return, does your software? That was for the first EIP, and the IRS has since taken that page down. There is no way to change the DD info with IRS except to either call or file a tax return with the correct banking info on it. At this point in time, for those that aren't required to file but want to so that it includes the direct deposit information, the only other option is to file an extension with a payment and report that on the return that includes the banking information. Someone above suggested making an estimated payment that could be claimed on the return, but it is too late to make an estimated payment for 2020 by electronic means on either the IRS site or EFTPS. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 12, 2021 Report Share Posted February 12, 2021 2 hours ago, jklcpa said: but it is too late to make an estimated payment for 2020 True, but you can make a tax return or extension payment for 2020 on IRS direct pay site. I would go with tax return for simplicity's sake. 2 Quote Link to comment Share on other sites More sharing options...
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