IRS Refunds Made Using Electronic Funds Transfer

2. Give IRS disbursing authority for refunds made using electronic funds
transfer.

The Secretary of the Treasury should delegate disbursing authority to
IRS for refunds made using electronic funds transfer and should, for all
other disbursements, expedite efforts to transmit refund information
electronically between IRS and FMS.

Current modernization plans will give IRS return centers most of the
technical capability to do electronic funds transfer. Granting
disbursing authority to IRS for these transactions should save time by
eliminating the need to transfer information to the FMS before paying
the taxpayer.

Similarly, electronically notifying FMS of refund checks to be issued
could speed the process compared to shipping tapes by plane. Therefore,
IRS and FMS are urged to find ways to do quicker transfers
electronically.