Splitting refunds among accounts.

• Author: Laffie, Lesli S.
• Position: FROM THE IRS

Taxpayers who opt to split their refunds among multiple accounts soon will have a new form to make such requests. The IRS unveiled a draft version of Form 8888, Direct Deposit of Refund; see IR-2006-134.

The form is intended to help taxpayers implement new choices and gain flexibility for direct deposits of their 2006 Federal income tax refunds.

Starting in January 2007, taxpayers can divide their refunds among as many as three checking or savings accounts and three different U.S. financial institutions, by using Form 8888. This option will be available for returns filed either on paper or electronically.

Variety permitted: In addition to traditional checking and savings accounts, refunds also can be directed to an...