I sold my car to my friend. She didn't have the money, so she told me she would pay me out of her tax refund check. Since she owed me money and was buying my car, I said cool. I gave her my account information. From there, I got the money from the refund. 3 days later, the bank closed my account. I call the bank to find out what was going on and that is when I was told. They said the IRS Closed my account. They said Fruad. Like I told the bank I have never wrote a bad check nor over drafted my account. What is going on. Now I gave this girl my car... That is crazy. What can I do legally. How can someone put money into your account then have the IRS close you account. I am being punished can I can no longer bank with them again.

Someone is scamming you. GO to the bank in person, and find out what really happened. I suspect that it was a fake check. I'll bet you never even saw the check?

(It was very foolish to give out your 'bank information,' depending on what you did. There is no need to give it out, ever. And it was foolish to hand over the car until you saw the money safely in your HAND, not your bank.)

joypulv is spot on with this... you did several things nobody should ever do.

I thought everything was fine because the money posted to my account. Next thing, like I said I went to use my account and was unable to. I called the bank and they 1st said there is a hold on my account. I called the next day and was told the IRS put the hold. I ask the bank if I can open another account and explained I have direct deposit and all. They said no. I am no longer eligible to bank with them. I am not sure how to get my car back. I am unable to find out anything. I called the IRS but from where I am not her, they will not provide any information. I shouldn't have given my account, and that was foolish. Not sure what to do now.. I have several checks out including checks for my health insurance. I just paid the quartlery payment.

Just because it posts doesn't mean its all your free and clear... Banks ALWAYS post the funds long before they clear... and if they don't clear for any reason... they legally can and will take every dime back.. PLUS any penalties owed.

And it appears that check bounced like a rubber ball.

You said you sold the car to your friend...was this really a friend? Was this someone you really knew personally?

My suspicion here... is this "friend" has used identitry theft to apply for a refund that's wasn't theirs... the person who WAS owed it complained they didn't get what was owed... investigation ensued... check was traced to his account... and this "Friend" is about to be in serious trouble.

There is a lot more to this if the IRS is this involved.

If the tax return was direct deposited to your account (it sounds like it was - otherwise how would the IRS have your account number to put a freeze on) that is where the problem is. When a person files their taxes and opts for a direct deposit refund, the refund has to go into an account with the tax payers name on it. She (he?) used your account number which has no ties to her at all. It would look like fraud on your part (like you attempted to steal her refund by having it go into your account). You need to get the person who filed the taxes and set up the direct deposit to contact the IRS and attempt to clear it up.

aliseaodo's idea sounds hopeful. IF the 'friend' is indeed a friend who just thought this would be an easy around not having a bank account, and not someone long gone with your car, maybe you can clear this up. But it has so many suspicious angles to it.. hope I'm wrong.

I agree this all sounds very suspicious for all of the reasons the others have mentioned. But, aliseaodo's statement about the name on the account having to match the name on the tax return is not true. Although the IRS strongly suggests that you never have you refund deposited into someone else's acct they will allow it. As long as there is a valid routing and acct number you can have your refund deposited into any acct you want. So even though it adds to the suspicion it is absolutely not the reason the acct was closed or the reason the IRS is involved.

I'm not as certain about this point, but I am fairly certain the IRS can't close your acct at the bank. But... it probably only takes strongly worded suggestion from them to have the bank close it.

EvanSr - you are incorrect. I worked at US Bank for many years - I am quite certain on the direct deposit information I gave. Please look at the link below from the IRS website, you will see it is said many, many times you CANNOT have your tax return direct deposited to a different persons account, UNLESS it is a spouses account, and the return is for taxes filed jointly.(Even then, you must verify the bank will allow for a joint check to go to an individuals account)
Frequently Asked Questions about Splitting Federal Income Tax Refunds
Here is the main page on direct depositing your tax return
Get your refund faster -- Tell IRS to Direct Deposit Your Refund to One, Two or Three Accounts
So, as I mentioned before, mahoganyanthony needs to have the person who filed the taxes and set up the direct deposit contact the IRS to attempt to clear this up.
(Also - the IRS absolutely has the power to freeze/close/withdraw money from accounts. I remember when an elderly lady who had a joint account with her son who owned a cab company came in because she was confused as to why her money was gone - her son had not paid his taxes for years and the IRS seized the account. Bummer that it was actually her account and his name was on it for convenience. Not sure where you are getting your information?)

Yes, several issues,

First if this is a real friend or just someone you meet on craigslist or somewhere.

There are a lot of fraud on car buying. You should have let them get their refund and then pay you, not have part sent to you. So many red flags on that issue alone.

Letting them have car beore you had money, big flag.