The Federal Revenue Service stated today that for the first time, consumers who electronically file their Form 1040-X, Amended U.S. Individual Income Tax Return, would be able to choose direct deposit for any resultant refund. This is the latest advance for taxpayers.
The amended return procedure took longer in the past because taxpayers who submitted Form 1040-X with the IRS had to wait for a paper check for any refund. Anybody who fills their Form 1040-X electronically can now choose direct deposit and enter their banking or financial institution information for faster refund delivery. Each year, taxpayers submit around 3 million revised tax returns.
The IRS Acting Commissioner Doug O’Donnell said, “This is a significant victory for taxpayers and another accomplishment as we restructure the IRS to improve taxpayer experiences. “With the help of this crucial upgrade, people who file amended returns will experience less inconvenience and faster refunds. We always recommend direct deposit when it is practical. It only makes sense to rapidly deliver tax refunds to taxpayers without having to worry about a misplaced or stolen paper check.”
In 2020, the IRS started accepting the Form 1040-X online, but up until now, direct deposit was not a refund option. After system changes by the IRS, people filing amended returns can now utilise direct deposit with the same speed and security as anyone filing an original Form 1040 tax return. If the software developer provides such capability, taxpayers who use tax preparation software to file an original tax return may also file an electronic Form 1040-X.
This is the most recent action the IRS has taken to enhance customer service during tax filing season. The IRS has employed more than 5,000 more telephone operators as part of financing for the Inflation Reduction Act and is expanding staff at IRS Taxpayer Help Centers (TACs). Also, between February and May, the IRS schedules four Saturdays with extended service hours at a number of TACS around the nation.
The Where’s My Amended Return? online service allows taxpayers to track the progress of their amended returns regardless of how they file them.
The option to file a paper Form 1040-X and obtain a paper check is still available to taxpayers. To prepare and submit the paper form, they must adhere to the instructions. When updated returns filed on paper, direct deposit is not available.
As processing an updated return still requires manual labour, even if it is done electronically, the current processing time for both paper and electronically filed amended returns is more than 20 weeks. But, filing online eliminates the need for the postal service, and incorporating direct deposit information on an electronic form offers a handy and secure option to get refunds more quickly.
(Source Credit: This article was originally published by irs.gov : news on February 9th, 2023.)