Your tax refund check isn’t coming in the mail anymore. The IRS just announced it’s going all-electronic for refunds and payments.
Here’s what you need to know:
What happens if you don’t provide direct deposit information?
If you file your return without banking information, the IRS will still accept and process it, but your refund timeline changes. You’ll receive a mailed notice requesting direct deposit details within 30 days. If you don’t respond, the IRS will eventually issue a paper check, but only after a significant delay.
What about payments to the IRS?
While the IRS strongly encourages electronic payment methods for taxes owed, paper checks and money orders remain acceptable for now. Electronic options include IRS Direct Pay, debit/credit cards, digital wallets and your IRS Online Account.
Is the same happening for businesses?
The transition is rolling out more gradually. The IRS is adding direct deposit options to most business tax return types. Please note that Federal Tax Deposits must already be made electronically, and failure to deposit electronically may result in penalties unless you can establish reasonable cause.
Staying a step ahead of change
Remember, this change doesn’t impact how you file your tax return. To avoid delays, ensure your direct deposit information is current when filing. Monitor IRS.gov for updates, and don’t hesitate to reach out to the tax professionals at Magone & Company with any questions.
This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your unique circumstances.