Taxpayers will have options for refunds being direct deposited.

• Position: National

The IRS will create a new program to allow taxpayers who use direct deposit to divide their refunds in up to three financial accounts. The program, taking effect in January 2007, was created in an effort to encourage high savings and more banking.

Form 8888, to be created by the IRS to give taxpayers more control over their refunds, will allow taxpayers to choose one, two or three accounts such as checking, savings and retirement.

Over 75 percent of the nation's taxpayers receive refunds each year. Last year, the IRS issued 100 million refunds, from 133 million tax returns, amounting to $217.6 billion. Just under half of those refunds, accounting for more than half of the money returned, were deposited...