If you read the articile here is a quote
they have on occasion had clients who received mailed refund checks intended for other taxpayers --

So this can happen even with paper checks and not just on direct deposit. Mistakes happen both ways. I would think having it happen on a paper check would be a lot worse as the other poster said. Having to cancel the checks and then re-issue them to be sent out could take weeks or months to do verse direct deposit would be a lot quicker.

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SAHM of Bailey 12, Tyler 10 , Emily Ann 6, and Ryan Matthew 4 yrs old.