IRS To Allow Direct Deposit for Electronically Filed Amended Returns
As part of its efforts to improve services for taxpayers, the IRS recently announced that people electronically filing their Form 1040-X, Amended U.S Individual Income Tax Return, will for the first time be able to select direct deposit for any resulting refund.
The IRS began accepting the Form 1040-X electronically in 2020, but it did not offer direct deposit as an option for a refund. Now, anyone who electronically files the Form 1040-X can select direct deposit and enter their banking or financial institution information for quicker delivery of refunds.
Taxpayers still have the option to submit a paper version of the Form 1040-X and receive a paper check. Direct deposit is not available on amended returns submitted on paper.
The IRS stated that current processing time is more than 20 weeks for both paper and electronically filed amended returns and encouraged taxpayers to file electronically and choose direct deposit to receive refunds faster.