IRS Expands Direct Deposit for Refunds

WASHINGTON - Most people will be able to enjoy the convenience of direct deposit next year by having the Internal Revenue Service send their tax refunds directly to their checking or savings accounts. Previously, only those filing electronically or using the 1040PC format could get direct deposit of their refunds.

"This option is good news for taxpayers and good news for us," said IRS Commissioner Margaret Milner Richardson, "because it makes life easier for those who pay taxes while improving our efficiency."

Direct deposit is:

• safer -- there's no check to get lost or stolen;
• easier -- there's no need to go to the bank;
• quicker -- takes lees time than issuing a paper check; and
• less costly -- saves tax dollars.

To choose this service, taxpayers will put the necessary bank account information on Form 8888, "Direct Deposit of Refund," and attach it to the tax return. This new form will be in the tax packages for Forms 1040 and 1040A and will also be available through the toll-free IRS forms number.

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