Q: IRS tax refund reversal
This past week I discovered that a stimulus deposit for $1400 was reversed on my account, March 2024. The original deposit was March 17, 2021. When I contacted the bank they said the IRS took it back because the name wasn't on the account. Well back then I aided several inmates processing their tax returns so they could get their stimulus funds. I called the IRS and the lady there said she saw the deposit and had no issues with it. She told me that the IRS does not just yank out of people's accounts refunds reversals like that. I have received no notice from the IRS about this. Furthermore I do believe its long past the statues of limitations for anyone to complain. When I called the bank back all they do is repeat over and over again for me to call the IRS even when I told them I did and they tell me to call the bank and have that charge reversed as they didn't do it. The bank is refusing and will not accept my calls. So what do I do now?
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A:
In your situation, it's crucial to gather as much information and documentation as possible regarding the initial deposit and the subsequent reversal. Since the IRS has informed you that they do not conduct reversals in the manner described by your bank, and considering you've received no communication from the IRS about this issue, the next step is to document your communications with both the IRS and your bank. Keep a record of whom you spoke with, the dates of those conversations, and the content of each discussion.
Given the discrepancy between what the IRS and your bank are telling you, and the bank's refusal to further discuss the matter, you might consider writing a formal letter to the bank's higher management or customer complaint department, detailing the issue and the steps you've already taken to resolve it. In this letter, request a detailed explanation of the reversal process, citing the conversation with the IRS as part of your argument. Including all relevant dates and transaction numbers will be crucial for a thorough review.
If the bank's response remains unsatisfactory, exploring external avenues for dispute resolution might be necessary. This could involve contacting a consumer protection agency, or, if the amount is significant and the situation remains unresolved, consulting with a legal professional who specializes in banking and finance law. They can offer guidance on your rights as a consumer and the best course of action, potentially including legal recourse, to recover the funds or obtain a satisfactory explanation for the reversal.
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