My tax return was direct deposited into 'friend's' acct, she kept it, told me IRS kept it. IRS said she has it

Question

I spoke to IRS and HSBC Bank where deposit was issured through, both say IRS dep. $$ into my friend's acct. on 3/27/07, and my 'friend' told me a month ago, the bank screwed up, three wks ago it was "The IRS kept it & applied to fiancee's back tax acct., last week she gave me a check on Tue. for 10% of total amt. she owes me, asking that I not cash it til Fri. of that wk. This is Tue. and IRS & HSBC tell me the refund was approved & tax refund was infact deposited into my 'friend's' acct. Is there any type of legal actions that I can pursue, if so, what? Where should one start in a matter of this nature? A lawyer, the D.A. of my County? What kind of legal matter (civil or criminal) does this fall under? I am looking to press the most, & hardest criminal charges against the two, as I feel this is larcency, theft, & down right deceat!!!

Answer 1

If you put the friend's bank account number on your return, directing that your refund be deposited there, then the IRS and HSBC Bank are out of the loop - sounds like they followed your instructions. You have no valid complaint, legal or otherwise, with either of them. Your only complaint is with your "friend".

Since your "friend" gave you a check for part of the amount, she basically admitted that she got the money. You could try to press charges against her - but even at that, unless you have something in writing signed by her that she would owe you the money, you might be on shaky ground as she could claim that you were paying back money you owed her, or something like that.

Answer 2

You directed the IRS to send your refund to HSBC Bank. At that point, the IRS is no longer in the picture.

You can go to the preparer and ask about the deposit to HSBC bank. You will be able to confirm what amount was actually sent to the bank, and if there were any offsets for back taxes. Your preparer will also be able to tell you when the money was sent to your friend's bank account.

You directed your preparer to have the HSBC deposit from the IRS sent electronically to your friend's account. This doesn't make sense to me, since the preparer would have to get the account numbers from you. You had some reason, not included in your question, to not have the check issued directly to you or sent to your bank account.

However, you gave the person your refund at that point. There is some kind of financial connection between you and the friend, which is missing from your answer. Is your friend or any of her children or other relatives on your tax return by any chance?

I don't see any crime committed upon you. If you had simply taken receipt of your refund rather than diverting it through a friend there would have been no problem.

Answer 3

I had the same thing happen. I e-filed with turbo-tax on 01/16/2009. My first date that was given was 01/30/2009, second was 02/03/2009 and the last was 02/10/2009. I called the IRS and they said it hat to do the the line that asked about my recovery rebate. Every one that filed the first day (01/16/2009) and put a value in that line is being held up. It would be better if we left it at 0. As of 11:30 to day still no refund, and when I check the IRS website it has no date now, it is like they have never received my e-file. Still waiting. Any one have any new answers yet?

Answer 4

Did you have any paper work between the 2 of you about this IRS account money? If not then contact the bank and try to get a copy of the check showing your name on it and then go to a lawyer and tell him the problem. Only thing is he will charge you. You might try legal aid and see what they can do for you.But you will need a copy of where the check was put in to the account with your name on it.Also try and get a copy of her bank statement.Then have IRS send you a report of your Tax return and a report showing when they sent out your return to the bank.

Answer 5

you don't seem to be upset with your "friend" as much as you are with the bank and IRS. Those two are not at fault, they did as you instructed ,, it is this person you keep referring to as a friend that is your problem.
No matter what the amount of money,, it's a small price to pay to learn the true character of this person. Take the person to court if they don't give you the money, and stop referring to them as "friend".

Answer 6

For the most part if falls under the heading of "STUPID". On YOUR part! Whatever prompted you to have YOUR money sent to someone else's bank account??!? Sorry for being so blunt, but if the shoe fits...

About your only recourse is to sue her for the money. Hopefully it's under the Small Claims limit for your area. If not, you'll need to consult with an attorney.

There's no crimminal issue here, sorry. It's strictly civil and your only course of action is against her. The bank and the IRS are innocent in this one.

Answer 7

now why would you have it deposited into a friends account? next time just have them mail your check