Yes, you can change your bank 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 bank account information for two main reasons: to deposit tax refunds directly into your account, or to collect unpaid taxes through electronic withdrawal. If you've moved banks, closed an account, or want to use a different account, you can update this information. The process is straightforward for refunds. For tax collection, the process is more restricted—the IRS can only change the account they withdraw from if you request it in writing, and they may not honor the request if they've already started collection proceedings.

The key difference is timing. If you're updating your account before the IRS has processed a refund or initiated a collection, you can change it yourself online or by mail. If the IRS has already begun using an account, you'll need to contact them directly and provide written documentation of the change.

Key Takeaways

  • You can update your refund bank account through IRS.gov, by mail with Form 8888, or by calling the IRS directly before your refund is processed.
  • If the IRS is collecting taxes from your account through wage garnishment or bank levy, you must request the account change in writing and the IRS may deny it if collection is already underway.
  • Changing your account after the IRS has issued a refund to the wrong account requires contacting the IRS by phone or mail; the refund does not automatically redirect.
  • The IRS updates account information in their system within one to two business days of receiving a valid request, but refunds already in process will not be rerouted.

Updating your account for a tax refund

If you're expecting a refund and want to change which account it goes to, you have three options. The fastest is through IRS.gov: log into your account, go to "Refund Status," and select "Change Bank Account Information." You'll enter your new routing number and account number. This works only if you haven't yet filed your return or if you're updating before the IRS processes your refund.

The second option is Form 8888, which you include with your tax return when you file. This form lets you split your refund between multiple accounts or direct it to a single account of your choice. You must file this form before you submit your return; you cannot use it to change an account after filing.

The third option is to call the IRS directly at 1-800-829-1040. A representative can update your account information over the phone if you can verify your identity. This works up until the moment the IRS processes your refund. Once the refund has been approved and sent to your bank, calling will not stop it or redirect it.

If the IRS has already sent your refund to the wrong account

If your refund was deposited into an old account you no longer have access to, you cannot ask the IRS to pull it back and send it to a new account. The refund is the bank's responsibility once it arrives. Your options are to contact the old bank and ask them to return the funds, or to contact the IRS by phone or mail to report the error and request a trace.

When you call the IRS at 1-800-829-1040, explain that your refund was sent to an account you no longer control. The IRS can file a refund trace, which is a formal request to the receiving bank to return the funds. This process takes four to six weeks. You'll need your Social Security number, the account number where the refund was sent, and the routing number of that bank.

If the old account has been closed, the bank may automatically return the refund to the IRS, which will then reissue it to the correct account. If the account is still open but not yours, the bank will not release the funds without the account holder's permission. In that case, you may need to contact the account holder directly or pursue the matter through your state's unclaimed property office.

Changing your account if the IRS is collecting taxes from it

If you owe back taxes and the IRS is withdrawing money from your bank account through a wage garnishment order or bank levy, you cannot straightforward change your account to stop the collection. The IRS has a legal claim against your account, and moving money to a different bank will not prevent them from pursuing collection through other means, such as wage garnishment from your employer.

If you want to request that the IRS use a different account for collection, you must send a written request to the IRS office handling your case. Include your name, Social Security number, the new routing number and account number, and an explanation of why you want to change accounts. Send this to the address on your most recent IRS notice. The IRS may deny your request if collection is already in progress, or they may honor it and begin withdrawing from the new account instead.

The more effective approach is to contact the IRS about setting up a payment plan or installment agreement. This stops the levy and lets you pay in smaller amounts over time, either through automatic bank withdrawals or by check. You can request a payment plan by calling 1-800-829-1040 or by submitting Form 9465 by mail.

What information the IRS needs to update your account

Whether you're updating for a refund or collection, the IRS will ask for your routing number and account number. The routing number is a nine-digit code that identifies your bank or credit union. The account number is the unique identifier for your specific account at that institution.

You can find both numbers on the bottom left of any check from that account. If you don't have checks, call your bank and ask for the routing number and account number. Some banks also display this information in their online banking portal under account details. Make sure you have the correct numbers before you submit them to the IRS; an error will send your refund or collection to the wrong place.

The IRS also asks whether the account is a checking or savings account. This matters for refunds, because some accounts may have restrictions on deposits. For collection, the IRS can withdraw from either type.

Timing: when changes take effect

If you update your account information through IRS.gov or by phone, the change appears in the IRS system within one to two business days. However, this does not mean your refund will be rerouted if it's already in process. The IRS processes refunds in batches, and once your refund has entered the batch being sent to your bank, changing your account information will not stop it.

For this reason, the safest time to change your account is when ready after you file your return, before the IRS begins processing. If you've already filed and your refund is on its way, assume it will go to the account you listed on your return. If that account is no longer valid, be prepared to contact the IRS for a refund trace.

For tax collection, the IRS typically gives you notice before they begin withdrawing from your account. If you receive a notice of intent to levy, you have about 30 days to request a payment plan or other alternative before the levy takes effect. Requesting a new account during this window is more likely to be honored than requesting one after the levy has started.

Using a different account type: prepaid cards and online banks

The IRS will deposit refunds to prepaid debit cards and online bank accounts as long as they have a valid routing number and account number. However, some prepaid card providers do not accept ACH deposits (the electronic transfer method the IRS uses), so you should confirm with your card issuer before you provide the account information to the IRS.

For tax collection, the same rule applies: the IRS can withdraw from any account with a routing number and account number, including prepaid cards and online banks. The only exception is accounts that are flagged as business accounts or that have restrictions on electronic withdrawals. If you're unsure whether your account will accept an IRS deposit or withdrawal, contact your bank or card issuer directly.

Frequently Asked Questions

Can I change my bank account after I've already filed my tax return?

Yes, but only if the IRS has not yet processed your refund. Log into IRS.gov and update your account in the "Refund Status" section, or call 1-800-829-1040. Once the refund has been approved and sent to your bank, you cannot stop it or redirect it. If it goes to the wrong account, you'll need to contact the IRS for a refund trace.

What happens if I give the IRS the wrong account number?

If the account number doesn't match any real account, the refund will be rejected by the bank and returned to the IRS. The IRS will then reissue the refund, usually to the address on your return. This can add four to six weeks to the process. If the number matches someone else's account, that person will receive your refund, and you'll need to contact the IRS for a trace.

Can the IRS follow my refund if I change banks after filing?

No. The IRS sends your refund to the specific account number you provided on your return. If you've closed that account, the bank will reject the deposit and return it to the IRS. The IRS will then reissue it to your address. You can avoid this by updating your account information before the IRS processes your refund.

Do I need to notify the IRS if I close my bank account?

Only if you're expecting a refund or if the IRS is collecting taxes from that account. If you're expecting a refund, update your account information before the IRS processes it. If the IRS is collecting, closing the account will not stop the collection; they will pursue other methods such as wage garnishment.

How long does it take for the IRS to update my bank account information?

The IRS updates their system within one to two business days of receiving a valid request through IRS.gov, by phone, or by mail. However, this does not mean your refund will be rerouted if it's already in process. Changes take effect for future refunds or collections, not for ones already underway.