More Than 52 Million Taxpayers Choose

Direct Deposit for Their Federal Income Tax Refunds

The 2006 tax filing season is now here, and the U.S. Treasury Department
wants taxpayers to know their options for filing their federal income
tax returns and receiving their refunds. Tax filing season 2005 resulted
in 68 million taxpayers using the Internal Revenue Service's (IRS)
*e-file* program and more than 52 million receiving their refunds by
direct deposit.

[Direct Deposit]{.underline}

The use of direct deposit for federal income tax refunds has grown
steadily in the last several years. Last year alone, there was a 7
percent increase in the number of taxpayers choosing direct deposit.
Taxpayers who use direct deposit get their refunds faster---in as little
as two weeks.

Direct deposit has been available for federal payments for more than 30
years and has proven to be safe, reliable and convenient, and statistics
indicate that electronic transmissions also have fewer errors. Taxpayers
who receive their refunds by direct deposit have significantly fewer
problems than with a paper check. If a problem does occur with a direct
deposit payment, it usually can be resolved in 24 hours, compared with
an average of 14 days for a replacement check.

*[E-file]{.underline}*

The IRS *e-file* program continues to make great strides**.** In 2005,
68 million taxpayers filed their tax returns electronically using IRS
*e-file*, and learned its many benefits: free/low-cost filing; fast,
safe refunds; security; accuracy---less than 1 percent error rate;
electronic signatures; proof of acceptance; electronic payment options;
and federal/state *e-file*!

There are a number of ways to *e-file*: on one's personal computer using
tax preparation software; online *e-file* services available free to
eligible taxpayers at [www.irs.gov](http://www.irs.gov/) or through a
professional tax preparer. There are volunteers who can assist taxpayers
in filing electronically at VITA (Volunteer Income Tax Assistance) and
TCE (Tax Counseling for the Elderly) sites. These volunteers provide
free tax preparation assistance for low-income individuals and the
elderly at community locations. Find the closest VITA or TCE site by
calling the toll-free number 1-800-829-1040. And, taxpayers who owe
money also can pay electronically!

The IRS has entered into partnership agreements with IRS *e-file*
partners (companies) to foster the use of electronic filing. As a
convenience to taxpayers, the IRS provides links to these companies' Web
sites, and the companies provide descriptions of their products and
services. The IRS and the U.S. government do not endorse or warrant
these companies or their products or services. The decision to use or
not to use any of these products and services will not result in any
special treatment from the IRS. For more information about IRS *e-file*
partners, visit the IRS Web site at:
[www.irs.gov/elec_svs/partners.html](http://www.irs.gov/elec_svs/partners.html).

To learn about the status of your refund, visit the IRS Web site at
[www.irs.gov](http://www.irs.gov/) and click on "Where's My Refund?" or
call 1-800-829-1040. You will need your Social Security number, your
filing status (single, married filing joint return, married filing
separate return, head of household, or qualifying widow/widower), and
refund amount.

Treasury's Financial Management Service and the IRS are collaborating to
promote IRS *e-file* and direct deposit in future tax filing seasons.
For direct deposit information, visit FMS' Web site at
[www.fms.treas.gov/eft](http://www.fms.treas.gov/eft). For general tax
information, call IRS' toll-free tax help line number 1-800-829-1040 or
visit [www.irs.gov](http://www.irs.gov/).

[How to Enroll in Direct Deposit]{.underline}

To choose a direct deposit refund, taxpayers indicate on the refund
portion of the electronic return, or on the paper form 1040, the
financial institution's routing transit number, their account number and
the type of account---checking or savings.

Successful direct deposit payments require accurate information,
including the financial institution, the depositor account number, type
of account (checking or savings), and routing transit number (RTN). If
the check is payable through a financial institution different than the
one where the checking account is, do not use the routing number on the
check. Instead, contact the financial institution for the correct
routing number.