More Than 49 Million Taxpayers Choose

Direct Deposit for Their Federal Income Tax Refunds

The 2005 tax filing season is now here, and the U.S. Treasury Department
wants taxpayers to know their options for filing federal income tax
returns and receiving refunds. Tax filing season 2004 resulted in nearly
60 million taxpayers using IRS *e-file* and more than 49 million
choosing to receive 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 10.8
percent increase in taxpayers choosing direct deposit. Taxpayers who opt
to use direct deposit get their refunds faster---in as little as two
weeks.

Direct deposit has been available for federal payments for nearly 30
years and has proven to be safe, reliable and convenient. Statistics
indicate that 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 Internal Revenue Services' (IRS) *e-file* program is making great
strides**.** In 2004, nearly 60 million taxpayers filed their returns
electronically, using IRS *e-file.* The program has many benefits:
free/low-cost filing; fast, safe refunds; security; accuracy (less than
a 1 percent error rate); electronic signatures; proof of acceptance;
electronic payment options; and federal/state *e-file*!

There are several ways to *e-file*: on a personal computer using tax
preparation software; online *e-file* services available free to
eligible taxpayers at [www.irs.gov](http://www.irs.gov/); through a
professional tax preparer; or over the telephone for taxpayers who
receive a TeleFile tax package. Volunteers 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 agreements with IRS *e-file* partners
(companies) to foster the use of electronic filing. As a convenience to
taxpayers, the IRS has provided links to these companies\' Web sites,
and the companies have provided descriptions of their products and
services. The IRS and the federal 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
[www.irs.gov/elec_svs/partners.html](http://www.irs.gov/elec_svs/partners.html).

[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) their
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 from the
one where the checking account is, do not use the routing number on the
check. Instead, contact that financial institution for the correct
routing number.

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 returns; head of household; or qualifying widow/widower) and
refund amount.

Treasury's Financial Management Service (FMS) and the IRS are
collaborating to promote *e-file* and direct deposit. 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/).