Bank Account Error on Efiled Return

[mwpope]

After reviewing the clients tax return I submitted the efile, only to have them say 60 seconds later, "Opps, I closed that bank account, can we get it to go to a differnt account?

I've sent AXT and email asking what I can do at this point but I'm too nervous waiting around for an answer. Does anybody know how I can get a stop put on this?

[jasdlm]

Can the TP talk to the bank and get it reopened to receive the deposit?

[ILLMAS]

Opps client fault, will have to wait for paper check, hopefully they are not in a rush to get it, but next time I bet they'll let you know they have closed or changed bank account. This has happened twice with my clients, both times called IRS and nothing that can be done at this point, in both cases the paper check took 3 to 4 months to arrive.

[Eli]

Can the TP talk to the bank and get it reopened to receive the deposit?

This option has worked more than once for me. Have client talk to his bank & this may be a viable option for him/her. I had one earlier this year that the bank helped him to reopen the acct & he was able to receive his refund on time.

Eli

[Terry D EA]

You have one other option and this is the possiblity of the return being rejected. If it is, then you are home free. If it isn't then the other options are all you have. I make it a practice to have the client verify the bank account entries. Doing this gives the client some time to think while they review the information. I mean I have them read the information from their check or information card after I enter it.

This mistake is not your fault so I wouldn't spend alot of time trying to correct it. Do what you can and then Oops maybe your client will be more careful the next time

[mwpope]

Thanks for everyon's quick response.

[jasdlm]

I agree with Terry. I actually screen print the 2nd page of their 1040 (that shows the routing/bank account number). I make clients initial that it is correct, and I keep it in my file! This forces them to pull out their checkbooks and look again.

[Terry D EA]

In TRX, there is a bank account verification form which can be used for the same thing. Didn't think about having them sign or initial anything but that is an exceptional idea. Thanks

[Lion EA]

I've been handing them the Direct Deposit/Debit Report (ProSystem fx) to sign along with their other signature pages to keep in my files.

Do have client call the bank and ask for their help. And, don't worry about it. :mellow:

[jainen]

>>make it a practice to have the client verify the bank account entries.... This mistake is not your fault <<

In my opinion, these two statements are contradictory. This was absolutely a failure of proper interview technique. As I say over and over and over on this forum, we can not simply assume anything on the tax return.

[kcjenkins]

Come on Jainen, if you ask the client "Do you want to use the same bank account for your direct deposit?

and they say "Yes." and then LATER, they say, "Opps, just remembered...." that is THEIR fault. There is a limit to how much babysitting we should be expected to do, IMHO.

[jainen]

>>There is a limit to how much babysitting we should be expected to do<<

There is also a limit to how lazy we can be in our professional duties. Pub 1345 at My link plainly says, "Providers with repeat customers or clients should check to see if taxpayers have new accounts. Some software stores prior year’s information and reuses it unless it is changed." Later it even says we should tell clients to verify the current number with the bank!

In my opinion, the preparer is responsible to make sure the client understands what we are asking and provides consistent information. In many cases this year, RTN's have changed with mergers, even though the account seems to function the same. The level of service you are describing, kc, is more typical of the national chain refund mills.

[kcjenkins]

Bull____.

[michaelmars]

I've been handing them the Direct Deposit/Debit Report (ProSystem fx) to sign along with their other signature pages to keep in my files.

I haven't seen this report in Prosystem, can you tell me the form number?

[Lion EA]

The Direct Deposit/Debit Report is a landscape sheet that draws its information from General-Basic-Direct Deposit/Electronic Funds Withdrawal. It prints out after Diagnostics and Carryovers and before Lists and Summary. ProSystem fx has a tiny label in the lower left corner of the printed form 903481 5-20-09. I like it because it has the deposits and debits all on one page for federal and any and all states with the bank RTNs and account numbers. I've been using it for the client to make one final check of their accounts as well as making sure that's how they want their deposits &/or debits handled, and asking them to sign it (even though there's no signature line) right along with Form 8879. One comes out with the client copy that's stapled with their return, but I print an extra copy to put in front of them for checking and signing and keep that signed copy. I keep it with other documents/info they gave me -- for now in their file folder, ultimately scanned into their .pdf file along with their tax return.