The IRS announced that beginning in January 2007, you will be able to designate your tax refund to go into as many as three different accounts. In the past, those who received tax refunds could only designate they be directly deposited into a single savings or checking account. The new rules allowing you to make the direct deposits into three different accounts will give those receiving a tax refund a better opportunity to place a portion of their tax refund toward savings and retirement if desired.
The IRS will create a new form, Form 8888, which will give taxpayers greater control over their refunds. Form 8888 will give taxpayers a choice of selecting one, two or three accounts such as checking, savings and retirement account. Taxpayers who want all their refund deposited directly into one account can still use the appropriate line on the Form 1040 series...
The split-refund program will allow taxpayers to conveniently designate – at the time they file – and deposit their refunds with any U.S. financial institution as long as they provide valid routing and account numbers. Taxpayers will attach a new Form 8888 to their returns indicating amounts for each allocation and providing account information.
The
full press release from the IRS.
More IRS Direct Deposit Tax Refund Options
