Recently the IRS announced the creation of a program to allow taxpayers who use direct deposit to divide their refunds in up to three financial accounts. A new form, Form 8888, will give taxpayers the choice of selecting one, two or three accounts for direct deposit refunds. Those accounts can be checking, savings or retirement accounts. The split-refund program will allow taxpayers to designate – at the time they file – and deposit their refunds with any U.S. financial institution. Taxpayers will attach Form 8888 to their returns indicating amounts for each allocation and providing account information. The program is scheduled to begin in January 2007.

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