The IRS released the 2026 Form 941, Employer’s Quarterly Federal Tax Return, and its instructions to be used beginning with the first quarter of 2026.
The Form 941 contains no changes from the 2026 draft version and no major changes from the 2025 Form 941. Employers should be sure to use the March 2026 revision beginning with the first quarter of 2026. The IRS expects the March 2026 revision will be used for all four quarters of 2026.
Executive order (EO) 14247, Modernizing Payments to and From America’s Bank Account, mandates the transition to electronic payments for all federal disbursements. This means the IRS will now issue Form 941 tax refunds by direct deposit and will not send paper checks. Employers can still choose to have overpayments applied to their next return by checking the appropriate box on new Line 15b. Line 15 was split into separate lines – 15a through 15e – for employers to enter banking information to receive a refund.
EO 14247 also mandates the transition to electronic payments for all payments made to the federal government, which means employers must pay any balance due on Form 941 electronically. Employers must use electronic funds transfer (EFT) to make federal tax deposits, which can be made using the Electronic Federal Tax Payment System (EFTPS), IRS Direct Pay, or an IRS business tax account.
Aggregate return filers must use the new Aggregate Return Filers Only section on Form 941 to identify if they are filing an aggregate return as a section 3504 agent, certified professional employer organization (CPEO), or other third party.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Rayna Alexander, Esq., is Editor of Payroll Information Resources for PayrollOrg.