A California man faces theft charges for allegedly spending a $110,000 tax refund that was posted to his account in error. The mixup happened when the woman who was actually owed the refund provided the IRS with an old bank account number for an account she had closed in 2004. The account number had since been re-assigned to the suspect, so the direct-deposit went into his account.
Direct deposit of refunds is great, but I always caution my clients to take extra time to review the bank information. And if you find that $110,000 has magically appeared in your bank account overnight, it’s a good idea to investigate and find out why, before you go spending the money!
You can read more about this story here.