Are you aware that the Internal Revenue Service (IRS) has made some changes to their banking information policies? If you’re an individual or business that deals with the IRS, then you need to be aware of these changes and what they mean for you. In this article, we’ll talk about what you need to know about the IRS change of banking information.
Firstly, let’s quickly recap what the IRS banking information is. This is the information you provide to the IRS for them to deposit refunds or other payments directly into your bank account. In the past, the IRS allowed you to change your banking information by calling them, but now they’ve made some changes to their policies.
Under the new policy, the IRS will only accept changes to banking information made through its Get My Payment or Non-Filers: Enter Payment Info tool. If you’re curious about what these tools are, Get My Payment is for changing banking information if the IRS has sent you a stimulus payment, while Non-Filers is for those who didn’t file a tax return in 2018 or 2019 and did not receive a stimulus payment.
The reason for this change is to protect taxpayers from potential fraud and identity theft. Updating banking information through these tools requires identity verification, which adds an extra layer of security. Moreover, the IRS is now requiring that banking information is verified with the tax return filer’s last return if they’re requesting a deposit of a refund on a 2020 return.
Another change is that if the IRS sends your payment to a closed bank account, the bank will reject the deposit and return the payment to the IRS. In this case, the IRS will mail a check to the address they have on file for you.
It’s essential to keep all your banking information up to date, especially if you’re expecting a refund or payment from the IRS. Make sure you use the correct IRS tools to update your banking information and remember to verify your identity. If you’re unsure, reach out to your tax professional for guidance.
In conclusion, these changes by the IRS regarding banking information are in place to ensure taxpayers’ protection from fraudulent activities. You should make sure you’re using the correct tools to update banking information and verify your identity to avoid any problems. Stay up to date with the latest IRS policies to protect yourself and your business.
