Electronically-Filed Amended Returns Can Now Get Direct Deposited Refunds

The IRS has made an announcement that taxpayers who electronically file their Form 1040-X, the Amended U.S Individual Income Tax Return, will now have the option to choose direct deposit for any resulting refund. This is a new development as taxpayers were previously required to wait for a paper check, which added more time to the process of filing an amended return. Taxpayers who use tax preparation software to file their original tax returns can also file an electronic Form 1040-X if their software provider offers this service.

Additionally, to improve taxpayer assistance and speed up processes, the IRS has hired over 5,000 new telephone operators and is increasing staff at IRS Taxpayer Assistance Centers. Taxpayers can still check the status of their amended returns using the “Where’s My Amended Return?” online tool, regardless of how they file. Taxpayers that prefer to submit a paper version of Form 1040-X can continue to do so, but direct deposit is not available in this case. However, the current processing time for both paper and electronically-filed amended returns is still more than 20 weeks.

IRS Acting Commissioner Doug O’Donnell said this update is a big win for taxpayers and a step towards transforming the IRS to improve taxpayer experiences. “This important update will cut refund time and reduce inconvenience for people who file amended returns. We always encourage direct deposit whenever possible. Getting tax refunds into taxpayers’ hands quickly without worry of a lost or stolen paper check just makes sense.”

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