Email this page  Print this page  del.icio.us  digg

IRS refund options

The Internal Revenue Service is creating a new program to allow taxpayers who use direct deposit to divide their refunds between up to three accounts, IRS officials say.

The IRS will create a new form, Form 8888, which will give taxpayers a choice of up to three accounts for receiving tax refunds, such as checking, savings and retirement accounts.

Taxpayers who still want all of their refund placed in one account can still use the appropriate line on the 1040 form.

"This program will give taxpayers the option of depositing a refund into more than one account," said Mark W. Everson, IRS commissioner. "Split refunds should encourage saving, and we hope it will dampen demand for refund-anticipation loans."

The IRS began offering direct deposit refunds in 1987. The Form 8888 program is scheduled to begin in January 2007.