For the first time, taxpayers who file Form 1040-X Amended U.S. Individual Income Tax Return will be able to request their refunds be sent to them via direct deposit.
In the past, taxpayers needed to wait for the paper check for their refund, which added time to an already long process; the IRS notes in the press release that current processing time is more than 20 weeks for both paper and electronically filed amended returns. This change is the result of system updates by the IRS. Direct deposits can only be requested on electronically filed amended returns. Taxpayers who file a paper amended return still must receive their refunds via a paper check in the mail.
“This is a big win for taxpayers and another achievement as we transform the IRS to improve taxpayer experiences,” said IRS Acting Commissioner Doug O’Donnell. “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.”
Another IRS enhancement is the “Where’s My Amended Return?” online tool. Taxpayers can track the status of their amended returns using this tool, whether the amended return was filed electronically or on paper.
If you have any questions on this or any other tax matter, please contact your Schneider Downs Tax Advisor.
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