Receiving an unexpected refund check from the Internal Revenue Service triggers a strange mix of excitement and suspicion. Is this a surprise windfall or a sophisticated trap?
Here’s the deal: Treat every unexpected check from the government as a question, not a deposit. In my nearly 30 years as a financial planner, I’ve seen these checks be everything from a forgotten refund for a two-year-old amended return to the opening move in a costly scam. The check itself isn’t the event; it’s a signal that something on your tax record has changed, and you are now required to figure out what.
This guide provides the exact, methodical process my clients use to verify the check, understand the reason behind it, and protect themselves from fraud.
⚡ Key Takeaways
- Do Not Cash It Yet: The first and most important rule is to pause. Depositing a fake or erroneous check can lead to frozen bank accounts and penalties.
- Verify First: Use the 3-step verification process below (physical check, official IRS online tools, phone call) to confirm the check is legitimate before you act.
- Scams are About the Follow-Up: The real scam isn’t the check, it’s the threatening call after you deposit it, demanding you wire money or pay with gift cards.
- Legitimate Checks Have Explanations: A real, unexpected check is usually followed by a letter (like a CP12 notice) explaining an IRS-made correction or interest payment.
Key Takeaways Ahead
💡 Avoid Costly IRS & Scam Red Flags
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- Avoid common tax-time scams
- Understand complex IRS notices
- Keep more of your money
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The First Rule: Do Not Cash or Deposit the Check Yet
Before you do anything else, pause. Fight the urge to rush to your bank. Depositing a fraudulent check, even if you do it unknowingly, can cause your bank to freeze your account, charge you fees, and report you for fraud. Your bank’s job is to process checks, not to verify their authenticity with the U.S. Treasury. That’s your job.
💡 Michael Ryan Money Tip
Don’t let excitement or fear make you act rashly. Depositing a fake check creates a legal mess, and spending an erroneous real check means you’ll have to pay it back. The safest move is to pause and verify.
The worst thing you can do is assume the check is legitimate and spend the money. If the IRS sent it in error or it’s a fake, you will be on the hook for paying the full amount back. Patience is your greatest asset.
How to Verify the Check is Real: Michael Ryan Money’s 3-Step Process
Follow these steps in order. Do not skip ahead.
Step 1: Examine the Physical Check for Security Features
Genuine U.S. Treasury checks are packed with security features. Get the check and look for these three things:
- Watermark: Hold the check up to a light. You must see a faint watermark that reads “U.S. TREASURY.” It should be visible from both the front and back.
- Microprinting: Look at the signature line. It should not be a solid line. Under a magnifying glass, you’ll see it’s actually tiny text that repeats the letters “USA”.
- Bleeding Ink: The Treasury Seal on the right side of the check will turn red and “bleed” when you apply a small amount of moisture.
If any of these features are missing, you are almost certainly holding a fake. For a full guide, you can review the security features on the U.S. Treasury’s official website or from LifeLock.
Step 2: Use the Official IRS Online Verification Tools
This is the fastest and most definitive way to confirm if the IRS really sent you money.
- For This Year’s Tax Return: Go to the official IRS Where’s My Refund? tool. You will need three pieces of information: your Social Security number, your tax filing status, and the exact dollar amount of the refund on the check. If the tool shows a refund was issued for that amount, the check is likely legitimate.
- For a Prior Year or Amended Return: If the check is for a return from a previous year, use the Where’s My Amended Return? tool.
Step 3: Call the IRS Directly (Only If Necessary)
If the online tools don’t provide an answer, your final step is to call the IRS. Use only the official numbers listed on the IRS website, such as the main line for individuals: 800-829-1040. Be prepared for long wait times.
💡 Avoid Costly IRS & Scam Red Flags
One clear financial move each week — straight from 30 years of seeing what goes wrong.
- Avoid common tax-time scams
- Understand complex IRS notices
- Keep more of your money
Get tax red flags like these delivered to your inbox every week.
3 Common Reasons for a Legitimate Surprise IRS Refund
If you’ve verified the check is real, you’re probably wondering why you got it. Here are the most common reasons:
- The IRS Corrected Your Tax Return:
- The IRS’s automated systems frequently find and fix errors on tax returns. If their correction results in you owing less tax or being eligible for a larger refund, they will automatically send you the difference. You will almost always receive a separate letter, typically an IRS Notice CP12, explaining the change. This letter will arrive a week or two after the check.
- You Qualified for a Missed Tax Credit:
- The system may also identify credits you were eligible for but didn’t claim. The most common are the Earned Income Tax Credit (EITC), the Child Tax Credit, or education credits.
- The IRS Owes You Interest:
- If your refund was significantly delayed (typically more than 45 days after the filing deadline), the law requires the IRS to pay you interest on that money. This often results in a second, smaller check for the interest amount. Note that this interest is taxable income. [cite: IRS, Interest on Underpayments and Overpayments]
🔍 Explained Simply: The CP12 Notice
The IRS mails the check and the explanation letter (like a CP12) separately. The check often arrives 1-2 weeks before the letter. This time lag is what causes most of the confusion. Expect a letter to follow. If you receive a check without the accompanying letter, it’s important to be patient and look out for the explanation that will clarify the reason for the payment. In the meantime, you can familiarize yourself with how to read a check to ensure you understand all the details, such as the date, amount, and signature.
Red Flags: How the “Unexpected Check” Scam Really Works
The scam isn’t the fake check. The scam is the follow-up.
Here’s the playbook: Scammers send you a high-quality fake check. You deposit it. The funds may even appear in your account for a day or two. Then, you get a frantic, threatening phone call from a fake IRS agent claiming there’s been an “overpayment” and you must “return” a portion of the money immediately via wire transfer, gift cards, or cryptocurrency to avoid arrest.
When your bank discovers the original check was fake, they pull the full amount back out of your account, but the money you wired to the scammer is gone forever.
⚠️ Myth Busted
“The bank accepted it, so it must be real.” This is false. Federal law requires banks to make funds available quickly, often before a check actually clears. The check can be found to be fraudulent weeks later, and your bank will pull the full amount back from your account.
Remember these red flags:
- Urgency and Threats: The real IRS communicates via mail. They will never threaten you with immediate arrest over the phone.
- Specific Payment Methods: The IRS does not accept payment via gift cards, wire transfer, or crypto. This is a 100% certain sign of a scam.
Frequently Asked Questions About IRS Fake Check Scams
💡 Avoid Costly IRS & Scam Red Flags
One clear financial move each week — straight from 30 years of seeing what goes wrong.
- Avoid common tax-time scams
- Understand complex IRS notices
- Keep more of your money
Get tax red flags like these delivered to your inbox every week.
Can I keep an unexpected IRS refund check?
Only if you have verified it is legitimate and intended for you. Cashing a check sent to you by mistake (an erroneous refund) means you will have to pay it back, possibly with interest. Always use the verification steps in this guide before considering the money yours.
How long does it take for the IRS to send an explanation letter?
Typically, the official explanation notice (such as a CP12 notice) arrives separately within 7 to 14 days after you receive the check. The check comes from the U.S. Treasury, while the notice comes from an IRS processing center, so they are mailed at different times.
I already received my refund via direct deposit. Why did I get a paper check?
This is a common scenario for legitimate adjustments. Your initial refund was sent via direct deposit as you requested. Later, the IRS may have made a correction (like applying penalty relief) that resulted in a second, smaller refund. These subsequent adjustments are often issued as paper checks by default.
What To Do If You’ve Confirmed It’s a Scam or an Error
If the check is real but sent in error: Do not cash it. This is considered an “erroneous refund,” and you are legally required to return it. The procedure is specific. You must write “VOID” on the back of the check and mail it back to the correct IRS center. You can find detailed instructions on the IRS website under “Topic No. 161, Returning an Erroneous Refund.” [cite: IRS.gov, Topic No. 161]
If it’s a scam: Do not deposit the check. Report it immediately to the Treasury Inspector General for Tax Administration (TIGTA) and the Federal Trade Commission (FTC).
An unexpected check from the IRS requires you to act like a detective, not a lottery winner. While it’s entirely possible the government owes you money, the risk of sophisticated scams is too high to ignore. Follow the verification process, use the official IRS tools, and never trust an unsolicited phone call that demands money.
By taking these calm, methodical steps, you can confidently determine if that check is a welcome surprise or a scam to be avoided. Additionally, it’s essential to verify the source of the check and ensure that it aligns with any prior agreements or transactions you may have made. By understanding title fraud risks, you can further protect yourself from potential scams that may try to take advantage of your trust.
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Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.
