Direct Deposit Savings Act of 2005

Direct Deposit Savings Act of 2005 - Amends the Internal Revenue Code to permit taxpayers to direct that any overpayment of taxes be: (1) refunded in part by check, draft, or similar paper instrument; (2) allocated in part among not more than four accounts; and (3) deposited by electronic fund transfer in the accounts to which allocated.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1048 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1048

To amend the Internal Revenue Code of 1986 to allow taxpayers to split 
    refunds and make deposits electronically among certain accounts.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 2005

Mr. Emanuel (for himself and Mr. Cooper) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow taxpayers to split 
    refunds and make deposits electronically among certain accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Direct Deposit Savings Act of 
2005''.

SEC. 2. SPLIT REFUNDS WITH ELECTRONIC FUNDS TRANSFER.

    (a) In General.--Section 6402 of the Internal Revenue Code of 1986 
(relating to authority to make credits or refunds) is amended by adding 
at the end the following new subsection:
    ``(g) Split Refunds.--In the case of any overpayment to be refunded 
to the taxpayer after the application of subsections (a), (b), (c), 
(d), and (e), the taxpayer may direct that the amount to be refunded--
            ``(1) be paid in part by check, draft, or similar paper 
        instrument, and
            ``(2) be allocated in part among not more than 4 accounts 
        and deposited by electronic fund transfer (within the meaning 
        of section 5061(e)(2)) in the accounts to which allocated.
Amounts may be deposited under paragraph (2) in a qualified financial 
institution (as defined by section 165(l)(3)) or an individual 
retirement plan.''.
    (b) Time When Contributions Deemed Made.--Paragraph (3) of section 
219(f) of such Code (relating to time when contributions deemed made) 
is amended by inserting before the period at the end the following: 
``or is made by direct deposit pursuant to the direction of the 
taxpayer under section 6402(g) on a return timely filed (not including 
extensions thereof)''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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