How to Update Your Business Bank Account with IRS Tax Authority

Keeping your business bank account information up-to-date with the IRS is crucial for ensuring smooth tax operations and compliance. Whether you’re changing banks, updating account details, or simply verifying your records, updating your bank account with the IRS is a straightforward process that every business owner should be familiar with.

What is an IRS Bank Account Update?

An IRS bank account update refers to the process of notifying the Internal Revenue Service (IRS) about changes to your business’s bank account information. This can include scenarios such as switching to a new bank, closing an existing account, or modifying account numbers due to a merger or acquisition. The IRS requires businesses to keep their bank account details current for various tax-related purposes, including the filing of tax returns, making estimated tax payments, and receiving refunds or credits.

Failure to update your bank account information with the IRS can lead to delays in processing tax payments or refunds, as well as potential penalties for non-compliance. By ensuring that your bank account details are accurate and up-to-date, you can avoid unnecessary complications and maintain a smooth relationship with the tax authorities.

How to Change Your Bank Account Information with the IRS

Updating your bank account information with the IRS involves a straightforward process that can be completed either online, by mail, or via fax. Here’s a step-by-step guide to help you through the process:

  1. Gather the necessary forms: The primary form you’ll need to complete is the IRS Form 8822-B, which is specifically designed for updating your business’s bank account information. This form can be obtained from the IRS website or by contacting their helpline.
  2. Complete the form accurately: Fill out the IRS Form 8822-B with your business’s updated bank account information, including the new account number, routing number, and the name and address of the financial institution. Ensure that all the details are accurate and legible to avoid any delays or errors in processing.
  3. Provide additional information: Along with the completed form, you’ll need to include your business’s Employer Identification Number (EIN) or Social Security Number (SSN), depending on the legal structure of your business. Additionally, include your business name and current mailing address.
  4. Submit the form: Once you’ve completed and verified the accuracy of the information, you can submit the IRS Form 8822-B via one of the following methods:
    • Online: The IRS offers an online submission option through their secure portal, which can be the fastest and most convenient method.
    • Mail: You can mail the completed form to the appropriate IRS address, which can be found on the form instructions or the IRS website.
    • Fax: If you prefer, you can fax the completed form to the IRS fax number provided on the form instructions.

Keep in mind that the IRS may have specific deadlines or timelines for processing bank account updates, so it’s essential to submit the necessary forms well in advance of any tax filing or payment due dates.

Required Information for IRS Bank Account Update

When updating your bank account information with the IRS, you’ll need to provide several key pieces of information to ensure a smooth and successful process. Here’s a breakdown of the required details:

  • New bank account information: This includes the account number, routing number, and the name and address of the financial institution where your new bank account is held.
  • Employer Identification Number (EIN) or Social Security Number (SSN): Depending on the legal structure of your business, you’ll need to provide either your EIN or SSN for identification purposes.
  • Business name and address: Provide your business’s legal name and current mailing address to ensure proper identification and correspondence.
  • Previous bank account information: In addition to the new bank account details, you’ll also need to provide information about the bank account you’re updating or closing, such as the account number and financial institution name.

It’s crucial to double-check the accuracy of all the information provided to avoid any delays or errors in processing your bank account update with the IRS.

Verification and Follow-up

After submitting your bank account update request to the IRS, it’s essential to verify that the change has been successfully processed. Here are some steps you can take to ensure a smooth transition:

  1. Confirm receipt: If you submitted the update request by mail or fax, you can contact the IRS to confirm that they have received and processed your submission.
  2. Check processing times: The IRS typically has specific processing times for bank account updates, which can vary depending on the submission method and the volume of requests they receive. Be patient and allow for the stated processing time before following up.
  3. Troubleshoot any issues: If you encounter any issues or delays in the update process, don’t hesitate to contact the IRS for assistance. They can provide guidance on resolving any problems and ensuring that your bank account information is updated correctly.
  4. Maintain accurate records: Keep copies of all the forms and correspondence related to your bank account update for your records. This will be helpful in case you need to reference the information or resolve any discrepancies in the future.

By staying proactive and following up as needed, you can ensure a smooth transition and avoid any potential disruptions in your tax operations or payments.