Thanks, Kate and Karen.

My clients had no adjustments for penalties or anything else that would warrant a refund. The letter didn't explain anything that showed that a refund is being processed.

The letter said that their bank declined the direct deposit. Their bank said that the IRS didn't attempt to process a direct deposit with the bank and that they are seeing a lot of these letters sent to their customers. 

I guess we will wait to see if there is additional correspondence.

Thank you for clarifying this issue.