Frequently Asked Tax Questions
IRS Procedures - Refund Inquiries
Rev. date: 12/19/2012
No. As a condition of your installment agreement, any refund due to you in a future year will be applied against the amount that you
owe.
- The IRS will automatically apply the refund to the taxes owed.
- You must continue making your installment agreement payments as scheduled and in full because your refund is not applied toward your regular monthly payment; therefore any payments due under the installment agreement must still be made in
full.
- Regardless of whether you are participating in an installment agreement or other payment arrangement with the IRS, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. For more information on these non-IRS refund offsets, you can contact Financial Management Service (FMS) at a toll-free number
800-304-3107.
Rev. date: 12/21/2012
If you have lost your refund check, there are several options available to initiate a refund trace on your
behalf.
- You can go to the “
Where’s My Refund?
” system available through the
IRS website and request assistance.
- You can call the IRS toll-free at 800-829-1954 and either use the automated system or speak with an
agent.
- If you filed a married filing jointly return, you cannot initiate a trace using the automated systems. The IRS will issue you a
Form 3911 (PDF),
Taxpayer Statement Regarding Refund, to get the replacement process started.
Once your claim for a missing refund has been processed and if your refund check has been cashed, the Financial Management Service (FMS) can provide you with a claim package that includes a copy of the check. FMS will review your claim and the signature on the cancelled check before determining whether an additional refund can be issued to you. The FMS review can take up to six weeks to
complete.
Rev. date: 12/21/2012
If you need to know whether your federal tax refund check has been cashed, you can initiate a trace on your refund by using one of the following
methods:
- You can go to the “
Where’s My Refund?
” system available through the
IRS website and request assistance.
- You can call the IRS Refund Hotline toll-free at 800-829-1954 and either use the automated system or speak with an
agent.
- If you filed a married filing jointly return, you cannot initiate a trace using the automated system. The IRS will issue you a
Form 3911 (PDF),
Taxpayer Statement Regarding Refund, to get the process started.
If you are trying to obtain a photocopy of your refund check because of a dispute over the proceeds, call the IRS toll-free at 800-829-1954 to request
assistance.
By law, the IRS is not allowed to disclose any information to you about someone else’s refund. For example, the IRS cannot discuss with you a check that was issued to another
taxpayer.
Rev. date: 12/19/2012
The IRS allows your refund to be split. A split refund lets you divide your refund, in any proportion you want, and direct deposit the funds into up to three different accounts with U.S. financial institutions. Taxpayers use
Form 8888,
Allocation of Refund, to request to have their refund split.
Rev. date: 12/21/2012
By splitting your refund, you get the convenience of directing some of your refund to your checking account for immediate needs and sending some to savings for future use. Plus, you get the safety and speed of direct deposit, meaning you will have access to your refund faster than if you opt to receive a paper
check.
Instead of choosing between depositing your refund into a checking or saving account and later moving part of your refund to another account, you can allocate your refund among up to three different accounts and send your money where you want it the first
time.
Rev. date: 12/21/2012
Simply complete and attach
Form 8888 (PDF),
Allocation of Refund (Including Savings Bond Purchases), to your federal income tax return. By using this form, you may request your refund (or part of it) to be deposited into up to three financial accounts at a bank or other institution (such as a mutual fund, brokerage firm, or credit union) in the United States. You may also use this form to request that your refund be used to buy up to $5,000 in paper series I savings
bonds.
Rev. date: 12/21/2012
Yes, you can ask the IRS to direct deposit your 2012 refund into one account, or split it among two or three different accounts. The choice is
yours.
- If you want your refund deposited into one account, use the special direct deposit lines on your tax return
(Forms 1040, line 74a-d,
1040A, line 43a-d, etc.).
- If you want your refund deposited into two or three accounts use
Form 8888,
Allocation of Refund (Including Savings Bond Purchases).
Rev. date: 12/21/2012
Yes, your refund must be large enough that you can deposit at least $1.00 into each account; your deposit into each account must be $1.00 or
more.
Rev. date: 12/21/2012
Yes, you can split your refund between direct deposit and a paper check by using
Form 8888,
Allocation of Refund (Including Savings Bond Purchases).
Rev. date: 12/21/2012
No, you can split your refund regardless of whether you file electronically or on
paper.
The IRS recommends using
e-file
to avoid simple mistakes that could change the amount of your refund, and
therefore the amount available for deposit.
Rev. date: 12/21/2012
You can ask the IRS to direct deposit a refund from a jointly filed return into your account, your spouse's account, or a joint account. However, state and financial institution rules can vary, and you should first verify that your financial institution will accept a joint refund deposit into an individual
account.
Rev. date: 12/21/2012
Yes, but the refund must be deposited by the due date for filing your tax return. In addition, IRS direct deposits of federal tax refunds will not indicate a contribution year for IRA
accounts.
- You should ensure your financial institution accepts deposits for the prior year to IRA
accounts.
- As with all IRA deposits, the account owner is responsible for informing their IRA trustee of the year for which the deposit is intended, for ensuring their contributions do not exceed their annual contribution limitations, and for ensuring their contributions are timely
made.
If you fail to notify your IRA trustee of the intended year for the deposit, your trustee can assume the deposit is for the current year (e.g. a refund received in 2013 is for 2012 not
2013).
The IRS is not responsible for the timeliness or contribution amounts related to an IRA direct
deposit.
- An error on your return or an offset of your refund could change the amount of refund available for deposit (for more information, see FAQ
Are there conditions that could change the amount of my direct
deposits?).
- You must verify the deposit amount and that the deposit was actually made to the account on time—i.e., by the due date of the return (without regard to
extensions).
If the deposit is not made into your account by the due date of the return (without regard to extensions), the deposit is a contribution for 2013, rather than 2012, and you must file an amended 2012 return and reduce any IRA deduction and any retirement savings contributions credit you
claimed
Rev. date: 12/21/2012
No. You cannot opt for a direct deposit into a loan account.
Rev. date: 12/21/2012
The government does not charge a fee to split a refund. However, tax preparation fees could vary. Ask your tax professional about his/her fees up
front.
Rev. date: 12/21/2012
There are several factors that could change the amount of your tax refund - resulting in either a larger or smaller refund than
expected.
- Examples that could increase your refund are math errors and other mistakes on your
return.
- Examples that could decrease your refund include math errors, mistakes, delinquent federal taxes, state taxes, child support, student loans, or other delinquent federal nontax obligations, or if the earned income tax credit (EITC) portion of your refund is withheld pending further
review.
Rev. date: 12/21/2012
The IRS will deduct the difference from the amount you designated for the last account shown on
Form 8888,
Allocation of Refund (Including Savings Bond Purchases). If the difference exceeds the amount designated for the last account, the IRS will deduct the remainder from the amount designated to the next account,
etc.
You will receive a letter from the IRS explaining why a portion of your refund was withheld, the effect on your direct deposit(s), and what information you need to provide to verify your EITC eligibility. If the IRS later determines you are eligible to receive the credit, the IRS will deposit the amount withheld into the first account you designated on Form
8888.
Rev. date: 12/21/2012
If you owe delinquent federal taxes, the IRS will withhold the balance due from your
refund.
- If your refund exceeds the amount of your delinquent federal taxes, the IRS will adjust your split refund direct deposits. The IRS will deduct the difference from the amount you designated for the last account shown on
Form 8888,
Allocation of Refund (Including Savings Bond Purchases).
If the difference exceeds the amount designated for the last account, the IRS
will deduct the remainder from the amount designated to the next account, etc.
Additionally, if you owe delinquent state income taxes, back child support, or delinquent non-tax federal debts such as student loans, etc., the Department of Treasury's Financial Management Service (FMS) will deduct the past-due amounts from the payment that appears first on the payment file received from the IRS (the IRS payment file orders accounts from the lowest to the highest routing number). If the debt exceeds the payment designated for the account that appears first on the payment file, FMS will reduce the payment designated for the account that appears next, etc. For questions about the deductions for past-due amounts, call FMS toll-free at
800-304-3107.
You will receive a letter explaining any adjustments the IRS made to your refund amount and direct deposit(s). You will receive a separate letter from FMS explaining any offset amount, the agency receiving the payment, the address and telephone number of the agency, and amount of your refund/direct deposit that was offset. If you dispute the debt on the letter you receive from FMS, you should contact the agency shown on the notice, not the IRS, because the IRS has no information about the validity of the debt. If you do not receive a letter from FMS, you may call the FMS TOP Call Center at 1-800-304-3107 or TDD 1-866-297-0517 for offset
information.
Rev. date: 12/21/2012
The IRS assumes no responsibility for tax preparer or taxpayer error. Please, verify your account and routing numbers with your financial institution and double check the accuracy of the numbers you enter on your return prior to signing and submitting your
return.
Be very careful entering your account and routing numbers. The IRS will handle account or routing number errors on split refunds the same as for regular direct
deposits.
For example, if:
- You omit a digit in the account or routing number of an account and the number does not pass the IRS's validation check, the IRS will send you a paper check for the
entire refund;
- You incorrectly enter an account or routing number and your designated financial institution rejects and returns the deposit to the IRS, the IRS will issue a paper check for
that portion of your refund; or
- You incorrectly enter an account or routing number that belongs to someone else and your designated financial institution accepts the deposit, you must work directly with the respective financial institution to recover your
funds.
Solution
- Generally, if the financial institution recovers the funds and returns them to the IRS, the IRS will send a paper check for that refund out to the taxpayer's last known address on file with the
IRS.
- After two weeks have passed with no results, file
Form 3911,
Taxpayer Statement Regarding Refund.
- If the return has not already posted to our system, you can request for us to stop the direct
deposit.
Rev. date: 01/08/2013
Check with your financial institution to ensure they will accept a direct deposit for the type of account you are designating. Some financial institutions will accept direct deposits for some types of accounts, but not
others.
- Ensure you have the correct account and routing numbers for the account - ask your financial institution if you are unsure - and double check the accuracy of the numbers you enter on your tax return. An incorrect or transposed number could result in your financial institution rejecting the deposit, or worse, depositing your refund into someone else's
account.
- Double check your return to ensure you have not made math or other errors that could increase or decrease the actual amount of your refund. IRS recommends electronic filing for the most error-free
return.
Remember: Your refund should only be deposited directly into accounts that are in your own name, your spouse’s name or both if it’s a joint
account.
Rev. date: 12/21/2012
The IRS will correct any agency errors. Contact an IRS customer service representative by calling 800-829-1040 (toll-free). However, unfortunately this could result in a paper
check.
Rev. date: 12/21/2012
Yes. You can split your refund on any original (current tax year only) return, even if you have an extension of time to file your
return.
Rev. date: 12/21/2012
No. Neither refund splitting nor direct deposit is available for any prior tax
year.
Rev. date: 12/21/2012
Yes, you can split your refund among up to three different U.S. financial institutions as long as they will accept a direct deposit to your account. Use
Form 8888,
Allocation of Refund (Including Savings Bond Purchases).
Rev. date: 12/21/2012
Yes. You can check the status of a split refund using the
Where’s My Refund?
feature available on IRS.gov or by calling the IRS's Refund Hotline toll-free at
800-829-1954.
-
Where's My Refund? will include a message confirming that your refund was split.
- It will not specify the amount deposited into each account, but it will tell you the estimated date of the deposits and, if the IRS adjusted the amount of your refund for math errors, etc., the amount of the
adjustment.
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