IRS Seeks Comments on Split-Refund Form

The Internal Revenue Service (IRS) has released a draft of http://www.irs.gov/pub/irs-dft/f8888--dft.pdf [1] Form 8888, Direct Deposit of Refund, the new form for taxpayers who opt to split their refunds among accounts, and it is now available for public comment.

Starting in January, taxpayers have more choice and flexibility for direct deposits of their 2006 federal income tax refunds. They can split their refunds among up to three checking or savings accounts and three different financial institutions, using Form 8888. This new option will be available for tax returns filed either electronically or on paper.

Taxpayers can continue to use the direct deposit line on Form 1040 to electronically send their refunds to one checking or savings account. This change will give taxpayers more options for managing their refunds, teamed with the speed and safety of direct deposit.

Tax professionals, taxpayers, and other interested parties have 30 days to make suggestions regarding the form and its instructions. The draft Form 8888 is posted on the IRS web site under the tax professional section. Comments may be submitted electronically to the IRS by selecting http://www.irs.gov/formspubs/page/0,,id=10179,00.html [2] Comments on Draft Forms and Publications.