Direct Deposit [Tax Law] Law and Legal Definition
Direct deposit is a banking term that allows a taxpayer to get his/her tax refunds directly deposited in their bank account. Direct deposit provides a fast and safe procedure for receiving a tax refund by avoiding the hassle associated with paper checks. In order to qualify for a direct deposit, a taxpayer must have an established checking or savings account. Direct deposits are made by the Internal Revenue Service (IRS) to the account numbers given by a bank or financial institution to the taxpayer.
Direct deposit serves as a common solution to the problem of lost checks. With this system, the payments will reach the account on the day when the check is issued.
