What Happens When Your Stimulus Check is Sent to a Closed Account?
When you receive a stimulus check and it is sent to an old bank account that has since been closed, what exactly happens to your funds? This scenario can lead to confusion, especially when the account has been inactive for a long time. Here’s a detailed look at the typical outcomes and what steps you can take to resolve the issue.
Understanding Different Scenarios
When your stimulus check is directed to a closed bank account, the outcome largely depends on the bank’s policies and the IRS’s procedures. Here are some possible scenarios:
Returned to the IRS
If the bank processes the payment and spots that the account is closed, the funds will usually be returned to the IRS. The IRS may then issue a paper check to the address on file for your most recent tax return. This process can take some time, and it’s essential to monitor your mail for a new check.
Direct Deposit to New Account
If you have provided the IRS with your new bank account information, such as via your tax return, the payment might be redirected to your new account. However, if the IRS only has your old account information, the check will likely bounce back to the closed account. In this case, they will attempt to issue a paper check.
Check Issuance
If the funds are returned to the IRS, they might issue a paper check to the address they have on file. This process can be delayed, so it’s important to ensure you check your address and banking details with the IRS.
Steps to Get Your Stimulus Check
Here are some detailed steps to help ensure you receive your payment:
Check Your IRS Account
The first step is to visit the IRS website and use the ‘Get My Payment’ tool to check the status of your stimulus payment. This tool will provide you with the most accurate information regarding the status of your check.
Contact Your Bank
Reach out to Wells Fargo or the bank to inquire about their process for handling deposits to closed accounts. Understanding their specific procedures can help you know what to expect and how to resolve the issue.
Update Your Information
Ensure that the IRS has your current address and banking information for any future payments. If you haven’t already done so, visit the IRS website and update your information to avoid potential delays in future payments.
What If the Account Was Closed Since January?
If your account had been closed since January, it’s important to clarify a few misconceptions. When a bank account is closed, there is no account to which the check can be directed. Wells Fargo would reject the transaction, and the Treasury Department would still have the funds. According to the IRS, they will mail out a check.
It’s worth noting that the IRS cannot take the money even if you happen to owe them something. This is not the same as deducting money from your account, a process that requires your agreement when you open an account. Instead, it’s similar to taking money from your wallet, which they have no right to do, as determined by court rulings.
Conclusion
When your stimulus check is sent to a closed account, it’s crucial to take proactive steps to resolve the issue. By checking your IRS account, contacting your bank, and updating your information, you can ensure that you receive your funds in a timely manner. Understanding the procedures and the IRS’s stance on closed accounts can help ease the process and prevent any further delays.