RECOMMENDATION 2607
RECOMMENDATION TEXT:
IRS should allow Taxpayers to make updates to their FI information through the taxpayers’ on-line account. This capability should be available through the date that the tax return can be verified as “Return Approved” through the Where’s my Refund? Tool. Justification: There are valid reasons that a taxpayer needs to change their FI information between the filing of a tax return and the receipt of a refund. Taxpayers who make payments to the IRS are allowed to update their FI information through their on-line account; taxpayers receiving refunds should be able to do the same.
IRS Action: Partially adopted
A critical component of the IOLA address change tool deployment collaborating with internal and external stakeholders to create a multi- channeled communication approach as part of a fully publicized launch. We will revisit updating Form 8822, form instructions, publications, FAQs, and other published material related to address changes. This ensures procedural consistency and transparency with the public.
RECOMMENDATION 2608
RECOMMENDATION TEXT:
IRS needs to provide clear instructions to taxpayers on the steps they can take to update their bank account information being used by the IRS.Justification: Clear, precise information improves customer satisfaction. Clear instructions benefit the IRS by reducing taxpayer phone calls.
IRS Action: Considered
The IRS established an internal working group to develop a bank repository feature for IOLA. The current long-term goal is to have something in place during FY 26, providing the plan moves forward. Including refund payment options is part of the work group’s development discussions. Future enhancements are contingent on funding approval as determined by the prioritization of other planned work.
RECOMMENDATION 2601
RECOMMENDATION TEXT:
IRS needs to provide clear instructions to taxpayers about what to expect if their direct deposit refund is rejected by their Financial Institution (FI).Justification: Information is difficult to find on the IRS website regarding the rejection of direct deposit funds from Treasury. Notices CP53A and CP53C are mailed to taxpayers only after the FI has rejected the transaction. Timelier, clear, and precise information improves customer satisfaction and avoids taxpayer frustration. Clear instructions benefit the IRS by reducing taxpayer phone calls.
IRS Action: Considered
Will add details about what to do if direct deposit is rejected to the suggested IRS.gov page, “Get Your Refund Faster…”
