
Taxpayers who file an individual amended tax return will now have the ability to receive their refunds via direct deposit, the Internal Revenue Service (IRS) announced.
Until now, those who filed an amended return (Form 1040-X)—approximately 3 million every year, according to the IRS—could receive a refund only in the form of a paper check. The IRS began accepting the Form 1040-X electronically in 2020.
"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."
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. Any filer of an amended return can still go to Where's My Amended Return? to check the status of his or her refund.
While an e-filer of an amended return may receive a refund faster if he or she opts for direct deposit, it still takes more than 20 weeks for the IRS to process an amended return, no matter how it is filed.