Step-by-Step Guide: How to Change Your Bank Information with the IRS

Step-by-Step Guide: How to Change Your Bank Information with the IRS

Dealing with taxes is undoubtedly a process that can make anyone feel overwhelmed. Fortunately, there are plenty of resources available to help individuals navigate through these complex tax-related issues. One of the most important topics to be mindful of is updating bank information with the Internal Revenue Service (IRS), especially if you are receiving tax refunds or making payments. In this article, we will look at the step-by-step process of how to change your bank information with the IRS, making your tax-related tasks a lot simpler.

Why You Might Need to Change Your Bank Information with the IRS

Before we dive into the steps for updating bank information with the IRS, it is crucial to understand why you might need to do so. Firstly, in case you have received a tax refund or tax credit, the IRS deposits the amount directly into the taxpayer’s bank account. Therefore, it is crucial that the bank information linked to your account with the IRS is accurate and up-to-date.

Moreover, if you need to make tax payments, the IRS allows you to make payments directly from your bank account. It makes the payment processes more secure and reduces errors. Therefore, updating your bank account information with the IRS will provide you with greater control over your financial situation and make dealing with taxes that much easier.

Step-by-step Process: How to Change Your Bank Information with the IRS

To ensure that you make the process of updating your bank information with the IRS as stress-free as possible, we have split the process into six easy-to-follow steps:

Step 1: Collect Important Documents

Before making any changes, you will need to get your bank details ready and have the relevant paperwork on hand. This includes your social security number, bank account number, and the routing number of your bank.

Step 2: Check Eligibility

You need to ensure that you can update your bank details with the IRS. The IRS allows bank updates only once the tax refund has been processed or accepted. Alternatively, you can update your bank details if your previous deposit failed or was returned.

Step 3: Use IRS Web Tools

The IRS recommends two ways to make these updates: you can either call the IRS or use their web tools to do it online. To do it online, head over to the official IRS website and navigate to the ‘Where’s My Refund?’ tool. Enter the required details and click on ‘Check Status.’ If eligible, you will have an option to update your bank information.

Step 4: Provide Accurate Information

Next, you will need to provide your updated bank details once prompted. Make sure you double-check the details that you provide to the IRS, ensuring that the information you enter is accurate. Please note that submitting incorrect details may cause delays.

Step 5: Wait for Confirmation

Once you have submitted your updated bank account information, please wait for confirmation from the IRS. The IRS usually takes up to three business days to respond to requests for updates.

Step 6: Monitor Bank Account

The final step is to monitor your bank account closely to ensure that the IRS has transferred the refund or payment to the correct account. Please double-check the details and ensure that the amount is accurately deposited.

Conclusion

Updating your bank account information with the IRS is essential to ensure that your tax-related concerns are dealt with smoothly. The process is easy, and by following the steps mentioned above, you can make the changes quickly and with ease. Remember, if you encounter any issues or have any doubts, be sure to contact the IRS directly or consult with a tax professional. Going forward, keeping your bank account details up-to-date will make a significant difference in keeping your finances under control.