8879 says OK to Tap my bank Account?

[Harvey Lucas]

Is it just me or did they make a dramatic change to the taxpayer declaration on the efile authorization form?

Last year, clients signed 8453, checked the top box that said OK to direct deposit my refund into my bank account.

This year, they did away with 8453 and replaced it with 8879.

8879 says nothing about the clients refund, instead, it appears to say that it is OK for IRS and Treasury to tap the clients bank account now and in the future for a variety of things, and the only way to stop it is for the client to contact treasury and revoke the authorization!

It appears that the only way to efile is to sign the 8879.

So then, if the client wants to efile to speed his refund...he has to sign a declaration allowing IRS open access to his bank account. Funny how this seems to have evolved to make it easier for IRS to grab your money.

I have many clients who I am certain will be very uncomfortable signing this new declaration, and I really could not in clear conscience advise them to do so.

It seems very odd to me that IRS and government are moving toward mandatory Efile and then along the way they change a few words here and there to make it easier for them to tap your bank account.

Have I got this all wrong?

Am I missing something?

Harvey Lucas

[Donald Rihn, EA]

8879

I compared the 2006 8879 to the 2007 form and I see the same statement on both.

Am I missing something?

[BOB W]

I don't read it that way. Within each sentence it says "that I direct". It says nothing about at the IRS's discression.

[ChEAr$]

Not missing a thing,

I compared the 2006 8879 to the 2007 form and I see the same statement on both.

Am I missing something?

Don. Key phrase is the paragraph which starts out 'If applicable". And of course it's
not applicable should taxpayer be getting a refund. Notice the permision only extends to
amounts owed for "this" year's return, and any estimated tax payments initiated via the
EFTS system.

[BP.]

Have a look at a prior year 8453. You'll see that the language there under 6(c) has been combined with the language just above the taxpayer's signature line, and it has been incorporated into the language you are referencing on the 8879. Nearly identical. But instead of a checkbox to check the 8453 line 6(c), the language on the 8879 says "If applicable . . ." Hope this makes you more comfortable having your clients sign the 8879.

[Koss]

Not applicable

I agree with other posts below. You are reading too much into it, or not reading enough.

Here's the exact text from Form 8879:

If applicable, I authorize the US Treasury... to initiate an ACH... for payment of my federal taxes owed on this return... this authorization may apply to future Federal tax payments that I direct to be debited through EFTPS. In order for me to initiate future payments, I request that IRS send me a PIN to accesss EFTPS.

Harvey Lucas wrote:

8879 says nothing about the client's refund.

Sure it does. The word refund appears on line 4, before the text in question. If the return shows a refund, then there are no "taxes owed on this return," so the whole thing becomes inapplicable. And even if the return has a balance due, any future payments would have to be initiated by the taxpayer, using the PIN sent to him by the IRS.

If the client isn't comfortable with this, then he can e-file without direct deposit. He'll get a federal check in the mail in about three weeks. He'll still have to sign the Form 8879, but he won't have to provide a bank account number.

BMK