Anyone have their direct deposit declined and paper check mailed instead?

Our return was accepted and was in processing until a week before the 26th, when I had expected it to be direct deposited. I checked online and for some reason, my refund was shown to be mailed on the 2nd, instead of being direct deposited on the 26th. I called the IRS and they said it was because I had 0 tax liability and our refund was large. Well, I am a full-time college student, we have 3 dependents, and paid over $12,000 in interest on our house this year...not to mention other deductions, so we actually got back $200 more than we paid in. Not uncommon since I know people who get a couple of thousand in earned income credit over what they pay in.





Anyways, so they said they couldn't honor our direct deposit and that they would mail our check instead. The website does say now that the check has been mailed, but this all seems so weird to me. I've never heard of them declining a direct deposit because of a large refund and 0 tax liability. Has this happened to anyone else?|||Could it be that the direct deposit information was wrong and it just got rejected because of that.|||May have happened because if your refund was unusually large someone reviewed it personally and cut you a check to prove it is correct and not an error in filing.|||Sounds strange to me too. Last I heard they were encouraging Social Security recipients to have their money direct deposited to prevent lost or stolen checks. Why should the IRS do the opposite?|||Most likely the DD was rejected by the bank. If the name doesn't match or if there's an error in the routing or account numbers that can cause the reject. Some banks also match up the SSN on the deposit transaction. If both aren't on the account or of there's an error it can be rejected for that as well. I've had that happen myself.|||i have never heard of that. That makes no snese|||no, well, not yet|||After filing over 25,000 returns, yes I have heard of this. It happens about 2 to 5% of the time. The IRS cannot guarantee a direct deposit. It is possible there was a type in the routing number for example. The IRS cannot send to a non-existent bank.|||Could happen if your account number and routing number were mistyped.