How you update bank information with the IRS depends on why the agency has your account details in the first place. For a tax refund, there is nothing stored to change: you enter your routing and account numbers on each year’s Form 1040, and those instructions apply only to that return. For an installment agreement with automatic monthly withdrawals, you update the account through your IRS Online Account at irs.gov or by calling 800-829-1040 for individuals or 800-829-4933 for businesses.1Internal Revenue Service. Payment Plans; Installment Agreements For one-time payments through Direct Pay, you simply type the new numbers the next time you pay.2Internal Revenue Service. Direct Pay With Bank Account
Changing the Account for a Tax Refund
Each time you file Form 1040, you tell the IRS where to send your refund by filling in your bank’s nine-digit routing number and your account number in the direct deposit section, then marking the account as checking or savings. The account number can be up to 17 characters, letters and numbers included.3Internal Revenue Service. Instructions for Form 1040 E-filing is faster than paper because the IRS registers your instructions as soon as it accepts the return.
The account must be in your name; on a joint return, either spouse’s name works. The IRS also limits direct deposits to three refunds per account per year. A fourth refund routed to the same account is automatically converted to a paper check.4Internal Revenue Service. Direct Deposit Limits
There is no carryover from year to year. If you switch banks between filing seasons, you don’t need to notify the IRS in advance. You just enter the new numbers on next year’s return.
Splitting a Refund Across Accounts
To send portions of your refund to different accounts, attach Form 8888. It lets you divide the refund across up to three accounts at different institutions, including retirement accounts.5Internal Revenue Service. Form 8888 Allocation of Refund> For a single account, the direct deposit lines on Form 1040 are all you need.6Internal Revenue Service. Get Your Refund Faster: Tell IRS to Direct Deposit Your Refund to One, Two, or Three Accounts
Changing the Account on an Installment Agreement
This is the situation where updating your bank information actually matters day-to-day. If the IRS is pulling monthly payments from an account you’ve closed or replaced, a failed withdrawal can put the agreement into default.7Office of the Law Revision Counsel. 26 USC 6159 – Agreements for Payment of Tax Liability in Installments
The fastest route is your IRS Online Account. Sign in, go to the payment options page, and select the option to change the routing and account number on your existing agreement. The same portal lets you adjust the monthly amount, the due date, or switch to direct debit.1Internal Revenue Service. Payment Plans; Installment Agreements Save the on-screen confirmation. If the IRS mails a follow-up letter, expect at least two weeks for delivery.8Internal Revenue Service. Online Account for Individuals – Frequently Asked Questions
If you can’t complete the change online, call 800-829-1040 for individual accounts or 800-829-4933 for business accounts.1Internal Revenue Service. Payment Plans; Installment Agreements Make the change well before your next scheduled withdrawal. Canceling a scheduled electronic funds withdrawal requires notice at least two business days before the payment date, so last-minute updates are risky.9Internal Revenue Service. Pay Taxes by Electronic Funds Withdrawal
One-Time Payments
IRS Direct Pay doesn’t store a bank profile. You enter your bank details fresh each time, so you use the new account on the next payment. Scheduled Direct Pay transactions can be changed or canceled up to two days before the payment date.2Internal Revenue Service. Direct Pay With Bank Account
If you scheduled a payment through electronic funds withdrawal when e-filing your return, the rules are stricter. Once the IRS accepts the return, you can’t change the bank account, amount, or date on that payment. Your only option is to cancel and pay a different way. Call IRS e-file Payment Services at 888-353-4537 no later than 11:59 p.m. ET two business days before the scheduled date, and wait at least seven to ten days after the return was accepted before calling.9Internal Revenue Service. Pay Taxes by Electronic Funds Withdrawal
The Paper Check Phase-Out
Beginning September 30, 2025, the IRS started phasing out paper refund checks for individual taxpayers, with most refunds now delivered electronically.10Internal Revenue Service. IRS to Phase Out Paper Tax Refund Checks Starting With Individual Taxpayers Providing accurate bank information at filing time is now closer to required than optional.
If your 2025 return doesn’t include direct deposit information, or if your bank rejects the deposit, the IRS will send a letter asking you to provide or update your banking details within 30 days. The letter includes a phone line for requesting a paper check exception. If you don’t respond within six weeks, the IRS issues a paper check anyway to avoid accruing interest on the refund.11Taxpayer Advocate Service. Tips on Electronic Payment Options Available to Taxpayers as the IRS Phases Out Paper Checks Prepaid debit cards and digital wallets are options for taxpayers without a bank account.10Internal Revenue Service. IRS to Phase Out Paper Tax Refund Checks Starting With Individual Taxpayers
If You Entered the Wrong Routing or Account Number
Three things can happen after a wrong-number filing, and the response depends on which one you’re in.
If you catch the mistake before the IRS finishes processing your return, call 800-829-1040 immediately and ask that the direct deposit be stopped.12Internal Revenue Service. Refund Inquiries 18
If the deposit was sent and the bank rejected it because the account is closed or the digits don’t match a valid account, the bank returns the funds to the IRS and the IRS mails you a notice with next steps. This resolves on its own.
The hardest case is when your incorrect numbers happen to match someone else’s active account and the bank accepts the deposit. You have to work directly with the financial institution to recover the funds, and the IRS won’t reissue the refund until the original deposit comes back.12Internal Revenue Service. Refund Inquiries 18 If five calendar days pass after the expected deposit date with no money in your account, file Form 3911 to open a refund trace. Banks have up to 90 days from the trace date to respond, and full resolution can take up to 120 days.13Internal Revenue Service. 21.4.2 Refund Trace and Limited Payability If the bank ultimately refuses to return the funds, the dispute becomes a civil matter between you, the bank, and the account holder who received the money.
What Happens If a Payment to the IRS Bounces
When stale bank information causes a payment to the IRS to fail, the penalty runs the other direction. The IRS charges a dishonored payment penalty when a bank returns an electronic payment or check for insufficient funds or a closed account. For payments under $1,250, the penalty is the payment amount or $25, whichever is less. For payments of $1,250 or more, the penalty is 2% of the payment. Interest accrues on top. The IRS may waive the penalty if you can show reasonable cause to believe the funds were available.14Internal Revenue Service. Dishonored Check or Other Form of Payment Penalty
A failed withdrawal on an installment agreement can also trigger a default. The IRS can terminate the agreement and resume enforced collection, including levies and liens, while interest and penalties keep accruing. Reinstating a defaulted agreement costs $89, reduced to $43 for low-income taxpayers, or $10 if you reinstate through the Online Payment Agreement tool.15Internal Revenue Service. Instructions for Form 9465 Installment Agreement Request Updating your bank information before a payment fails avoids the default entirely, which is cheaper than fixing one.