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Stimulus Refund Deposited to a Cancelled Bank Account.?

After receiving my 2007 tax refund which was deposited into a small town Credit Union, I cancelled the account and opened up a account at a major bank for location reasons and being open on saturdays. Soon after It was announced that stimulus refund checks would be issued. I found out that since I filed for a direct deposit that there was no way to notifiy the IRS to place me on the mailing list for the refund. The IRS told me that a direct deposit will be attempted then not processed since the account was cancelled and a paper check will be issued. My question since the IRS rep. was clueless, Will I be placed on the scheduled paper check mailing list, or will I have to wait till every paper check is mailed then mine will be issued, since im on the direct deposit list to a invalid account.

Public Comments

1. You will have to contact the IRS after it tries to direct deposit your check and fails. Once it fails, you must contact the IRS, fill out a form, mail or fax it into them, they'll do an investigation (normal process) that will take 4 to 6 weeks to trace the check (normally 6 weeks or longer) and then if they find that the check has not been cashed or in your case deposited, they will reissue payment out to you. Please note you must specify that they need to mail out the check to you with the address on file. If you don't do this or any of the above steps get messed up whether your end or the IRS end, they will take an additional 4 to 6 weeks to do another so called investigation. This can happen as many times as possible until everything is processed correctly. It sucks, but unfortunately, you're in a waiting game.
2. I made a call to the IRS help line and they assured me that your paper check will come on time with those sent for your specific SS# order. So, don't worry all will turn out fine. Make sure you save that stimulus money!
3. When an ACH bounces due to a closed account or bad account or routing number, the IRS will re-flow the payment for a paper check. That takes 4 to 6 weeks. Once your rebate is released, it's out of the "rebate queue" and into the "payment queue." The re-flow is pretty much automatic but you won't be put back in the "rebate queue" so you'll just have to wait it out. The IRS won't know about the closed account until the transfer bounces and is returned by the financial institution. There's no way to re-designate it for a paper check until it bounces and when it does it won't go back to rebate processing.
4. Actually...what will happen is the IRS will send it direct deposit to your account that is closed (because that is how your tax refund was disbursed to you) and then it will be rejected by the bank!! After that is done, the IRS will then process it into a Paper Check and mail it to you!! So, you won't be put on the Paper Check list!! It all depends on how long it will take for the bank to reject and the IRS to reprocess your rebate!! Hopefully not that long!!