Yes, you can change your checking account with the IRS, but the method depends on why you're changing it and what the IRS is using your account for
The IRS holds checking account information for two main reasons: to deposit tax refunds directly into your account, or to collect taxes you owe through an automated withdrawal. If you've closed the account, moved banks, or straightforward want to use a different account, you can update this information. The process is straightforward for refunds. For debt collection, it's more restricted—the IRS can't easily be told to stop withdrawing from an account once a levy is in place, though you have other options.
The timing matters. If you're changing your account before the IRS processes a refund or withdrawal, you can update it yourself online or by mail. If the IRS has already initiated a transaction to an old account, you'll need to contact your bank and the IRS separately to recover the money or redirect it.
Key Takeaways
- You can update your refund account information through IRS.gov, by mail, or by phone before the IRS processes your return.
- If the IRS has already sent a refund to a closed account, contact your bank first—they may return it automatically or you may need to claim it.
- If the IRS is withdrawing money from your account to pay a tax debt, you cannot straightforward change the account; you must address the underlying debt or request a payment plan.
- The IRS uses the account information from your most recent tax return, so updating your return before filing is the easiest prevention step.
Updating your account before the IRS processes a refund
If you filed your return with one checking account but now want the refund sent to a different account, you have a window to make the change. The IRS processes refunds in batches, typically issuing them within 21 days of accepting your return, though some returns take longer if they're selected for review.
The fastest way to update is through IRS.gov. Log into your account, go to "View Your Tax Account," and look for the refund status tool. If your return has been accepted but the refund hasn't been issued yet, you can change the account information there. You'll need your routing number and account number from your new bank.
If you can't access IRS.gov or prefer not to, you can call the IRS at 1-800-829-1040 and speak to a representative. Have your Social Security number, filing status, and the refund amount ready. They can update your account information over the phone, though processing may take longer than online updates.
By mail, send a signed letter to the IRS with your name, Social Security number, the tax year in question, and your new routing and account numbers. Mail it to the address on your most recent notice from the IRS. This method is slowest and should only be used if you can't reach the IRS by phone or online.
What happens if the IRS already sent money to a closed account
If your refund was deposited into an account you've since closed, the bank's response depends on its policies and how long ago the deposit occurred. Most banks will automatically return deposits to closed accounts to the IRS within 10 to 30 days. The IRS then holds the money and sends you a notice asking you to claim it or provide corrected account information.
Contact your bank first to confirm the deposit was returned. Ask them for the date it was sent back and request written confirmation. Then contact the IRS at 1-800-829-1040 with this information. The IRS can reissue the refund to your new account, though this process can add 4 to 8 weeks to your timeline.
If your bank did not return the deposit—which is rare but possible if the account was open long enough for the deposit to clear—the money may be held by the bank or treated as unclaimed property. Contact your state's unclaimed property office to search for it. Your state treasurer's office maintains a searchable database.
Changing your account when the IRS is collecting a debt
If the IRS is withdrawing money from your checking account to pay a tax debt, you cannot straightforward change accounts to stop the withdrawals. The IRS has placed a levy on your account, which is a legal claim to the funds. Switching banks will not stop the levy—the IRS can follow the levy to a new account if it's in your name.
Your options are to resolve the underlying debt or request a payment arrangement. You can set up an installment agreement through IRS.gov or by calling 1-800-829-1040. An installment agreement lets you pay the debt over time in smaller amounts, which may reduce or stop the levy. You can also request an Offer in Compromise if you cannot pay the full amount, though this is rarely accepted.
If you believe the levy was placed in error or you face financial hardship, you can request that the IRS release or reduce the levy. Contact the IRS Collection Division at the number on your notice. Have documentation of your hardship ready—recent pay stubs, bank statements, or medical bills.
Preventing account issues on future tax returns
The simplest way to avoid these problems is to use the correct account information when you file. Double-check your routing number and account number before submitting your return. These numbers are printed on the bottom left of your checks, or you can ask your bank for them.
If you know you'll be changing banks before tax season, update your information with the IRS proactively. You don't need to wait for a refund to be processed. You can call 1-800-829-1040 and update your account information on file for the current tax year.
If you file through a tax professional or software, review the account information they've entered before you authorize the return. Many errors happen because the wrong account number was typed or an old account was used by default.
How the IRS matches accounts to returns
The IRS uses the routing and account numbers you provide on your tax return or through IRS.gov. It does not cross-reference your name with your bank account—it relies entirely on the numbers you give it. This is why accuracy matters and why changing the information before processing is so important.
If you file jointly with a spouse, both of you must agree on which account to use. The IRS will not split a refund between two accounts. If you and your spouse want the refund in different accounts, you'll need to file separate returns or arrange the split between yourselves after the refund is issued.
Frequently Asked Questions
Can I change my account information after the IRS has already issued my refund?
Not directly. Once the refund is issued, you must work with your bank and the IRS separately. If the refund went to a closed account, the bank should return it automatically. If it went to the wrong account, contact the IRS to report the error and request a trace. The IRS can investigate and reissue the refund, but this takes several weeks.
What if I gave the IRS the wrong routing number by mistake?
Call the IRS at 1-800-829-1040 when ready if you catch the error before your refund is issued. They can correct it. If the refund has already been sent to the wrong bank, the receiving bank will likely return it as unmatched. The IRS will then contact you to provide the correct account information.
Do I need to update my account information every year?
Only if you've changed accounts. The IRS does not carry over account information from one year to the next automatically, so you'll need to provide it again on your next return. If you're using the same account, you can straightforward enter it again when you file.
Can I use a savings account instead of a checking account for my refund?
Yes. The IRS accepts both checking and savings accounts for direct deposit. You'll need the routing number and account number for whichever account you choose. Some banks charge fees for frequent deposits to savings accounts, so check your bank's policy first.
What if the IRS is taking money from my account and I need it to stop when ready?
Contact the IRS Collection Division at the number on your levy notice. Request a temporary hold or release based on financial hardship. You'll need to provide documentation. This is not a permanent solution—you'll still owe the debt—but it can stop withdrawals while you work out a payment plan.