IRS to allow direct deposit for e-filed 1040-X

In the latest improvement for taxpayers, the Internal Revenue Service announced that taxpayers who electronically file their Form 1040-X, amended personal income tax return, will for the first time be able to select direct deposit for any resulting refund.

Previously, taxpayers who filed Form 1040-X with the IRS had to wait for a paper check for any refund, a step that added time onto the amended return process. 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.

Current processing time is more than 20 weeks for both paper and electronically filed amended returns, as processing an amended return remains a manual process even if it’s filed electronically. However, filing electronically cuts out the mail time, and including direct deposit information on an electronically submitted form provides a convenient and secure way to receive refunds faster.