How to Update Your Banking Information with the IRS
Keeping your banking information up-to-date with the IRS is essential for avoiding any potential penalties or fees. If you’ve recently changed banks, opened a new account, or even switched account types, it’s important to inform the IRS about these changes. In this article, we’ll discuss how to update your banking information with the IRS and why it’s crucial.
Why It’s Important to Update Your Banking Information with the IRS
The IRS uses your current banking information to process refunds, send stimulus payments, or withdraw taxes owed. If you fail to keep your banking information updated, you might miss out on these payments, which may be time-sensitive. Additionally, you might be charged a fee if your payment is returned due to an incorrect or outdated bank account number.
Steps to Update Your Banking Information with the IRS
1. Gather your information
Before updating your banking information with the IRS, it’s crucial to have all the necessary information at your fingertips. Make sure you have your Social Security number or individual taxpayer identification number (ITIN), bank account number and routing number, the latest tax return you filed, your address, and any other personal identification for authentication purposes.
2. Choose the right form
The IRS has various forms for updating your banking information. The correct form to use depends on your individual circumstances. Here are a few commonly used forms-
– Form 8822: Change of Address
– Form 14039: Identity Theft Affidavit
– Form 3911: Taxpayer Statement Regarding Refund
– Form 4868: Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
3. Fill in the required details
Make sure to fill in all the required details accurately. Double-check before you submit the form to avoid any errors. Ensure that you provide the updated bank name, account number, and routing number.
4. Submit the form
Once you’ve completed the appropriate form, you can submit it to the IRS via mail or online. It’s always better to opt for the online option as it’s fast, secure, and easy.
Conclusion
Updating your banking information with the IRS is a straightforward process, but it’s critical to ensure that you do it correctly. Your payment status and refunds depend on it, and it can save you from any potential fees. By following these simple steps, you can update your banking information with ease. Remember to keep your personal and banking information up-to-date with the IRS regularly.
