The Bonds of Taxes

This year, for the first time ever, taxpayers can receive their refunds from the IRS in the form of a savings bond, or even in a good old U.S. Treasury Bond, for up to $5,000. Or you can have the money directly deposited in your IRA. The idea is that your refund can end up helping out the U.S. Treasury while also going directly to work as part of your portfolio.

There are rumors and emails going around, though, insisting that the savings-bond plan has become the default option for IRS refunds. According to one such email, "the IRS has decided that all refunds due clients will be paid in US Savings Bonds unless you choose to 'opt out.'"

This is not true. To get your refund in a savings bond, or in any other of the unconventional forms, you have to "opt in," by filling out IRS Form 8888. If you don't, you'll get a check or a direct deposit of any refund due you, just as in years past. No one is going to be surprised by receiving a savings bond from the IRS.