As of March 31, 2026, refunds due on original Federal Form 941 filings will now be issued electronically by the IRS. As part of this update, Form 941 now includes the client’s bank account information when applicable.
This change supports the IRS’s ongoing efforts to modernize tax administration by improving processing efficiency, reducing delays associated with paper checks, and enhancing accuracy and security. Electronic refunds allow funds to be delivered more quickly while reducing administrative handling for both the IRS and taxpayers.
What’s changing?
- Form 941 now includes fields for the client’s bank account information when filing electronically.
- The IRS will use this information to deposit refunds directly into the taxpayer’s account.
- This applies specifically to original returns filed electronically, not amended or paper-filed returns.
Why this change matters
This update is part of the IRS’s modernization efforts to:
- Speed up refund delivery through direct deposit
- Reduce delays associated with paper check processing
- Improve accuracy and security of refund distribution
- Minimize administrative handling for both taxpayers and the IRS