As you know, The IRS prefers to issue refunds via direct deposit. Using direct deposit is faster and cheaper for the agency. But taxpayers should be careful with their direct deposit information, as a mistake can result in losing a tax refund forever. You should gain all information 100%.
Universally, direct deposit is a relatively safe way to receive your tax refund. It is reasonable because there is no check to get lost in the mail and the IRS can send out refunds faster than by mailing a check. However, direct deposit is not completely safe. It can happen if taxpayers put incorrect bank account numbers in the direct deposit so it will encountered enormous difficulties in retrieving their tax refund, even resulting in losing the refunds forever. By comparison, if a check is mailed to a wrong address or someone other than you cashes a check from the IRS, the IRS has legal and administrative options for retrieving the misappropriated refund money. Those same protections are completely lacking with direct deposit refunds. So, always get a check, unless you are 100% sure that your bank info is correct.
The IRS can deposit your tax refund directly into your checking or savings account. The IRS publishes a calendar of when they send out direct deposits and mail out paper checks. You can check Publication 2043 to find out when your federal tax refund is likely to be deposited into your account.
Direct Deposit is a Free Service
Direct Deposit of your refund is a free service offered by the IRS and state tax agencies. Your tax preparer cannot charge you extra fees for using direct deposit. (This is forbidden by Treasury regulations governing tax professionals.)
Direct Deposit is Usually Safer than a Check
Since there is no check to get lost in the mail or stolen by someone else, getting your refund by direct deposit is considered safer. But still, you must make sure your bank information is 100% valid.
Direct Deposits are Sent out Earlier than Paper Checks
Direct deposit faster because the IRS sends out direct deposits earlier than they mail out paper checks. Universally, the IRS transmits direct deposits a full 7 days before they mail out a paper check.
