IRS to Widen Direct Deposit Option

More taxpayers will have the opportunity next year to receive refund checks from the Internal Revenue Service via direct deposit into their checking or savings accounts.

Previously, only taxpayers filing electronically through a commercial service or using Form 1040PC to figure their taxes on a personal computer could obtain refunds via direct deposit.

Now taxpayers using paper returns--Forms 1040, 1040A and 1040EZ--can put the necessary bank information on a new Form 8888, “Direct Deposit of Refund,” and attach it to their return.

The IRS says direct deposit is safer because there is no check to get lost or stolen and easier because recipients don’t have to go to the bank. The IRS says direct deposit also saves processing time.