If the amount you overpaid is large, you may want to decrease the amount of income tax withheld from your pay. See Income Tax Withholding and Estimated Tax Payments for Individuals for 2001 on page 17. You will receive a notice from FMS showing the amount of the offset and the agency receiving it. Through 66d - Direct Deposit of Refund. You get your refund fast.
Payment is more secure - there is no check to get lost.
No trip to the bank to deposit your check. Saves tax dollars. A refund by direct deposit costs less than a check. You can check with your financial institution to make sure your deposit will be accepted and to get the correct routing and account numbers. The IRS is not responsible for a lost refund if you enter the wrong account information.