Tips from the Tax Mam: Direct Deposit Nightmare


A word of caution to all. I just received a call from a client who had her refund direct deposited into her Ex-husband’s bank account. She has been receiving refund cheques in the mail for a number of years. This came to light when I checked her online account and told her that her refund had been deposited last week into her bank account but she said the money was not there.

She telephoned the Canada Revenue Agency (CRA) to enquire where exactly, had her money been deposited. It turns out that CRA is so hard-up with doing away with processing paper cheques that they are looking back through taxpayer’s previous year’s tax returns (as far back as 6 years) for any bank account on file and updating taxpayer’s files without their knowledge to THAT bank account.

CRA told her to contact her Ex-husband and ask him for the money – that was their easy solution. The other solution involves her having to wait another 2 weeks and then contacting them again which will start an investigation at their end – but bottom line – the delay will be about 10 weeks before she gets her refund.

So, word of caution – if you have not already done so (especially if you are still receiving cheques), make sure CRA has your latest banking information on file as soon as possible – otherwise your refund could be going to a bank account you closed years ago or to someone else’s account!

For more information on my services, please visit my website at www.sauvetaxservice.ca