The IRS released a draft version of 2026 Form 941 used by employers to file their quarterly federal tax returns. While it’s not final yet, this early release gives businesses an awareness about some key changes they can expect in the upcoming year. 

This draft includes two major updates which make the filing process smoother and help employers to receive their tax refunds more quickly. 

What’s New in Form 941 

1. New “Aggregate Return Filers Only” Section

• A new checkbox section “Aggregate Return Filers Only” has been introduced to draft Form 941. It will enhance the clarity and improve tracking of filings made by third parties. 

• Select one of the following three options to indicate your filing status: 
  
  
  1. Section 3504 Agent 
  2. Certified Professional Employer Organization (CPEO) 
  3. Other Third Party 

Section 3504 Agent 

Section 3504 Agent is a third-party entity authorized by the IRS to act as an agent on behalf of an employer for payroll tax purposes. 

Certified Professional Employer Organization (CPEO) 

A CPEO is an IRS certified organization that works with clients or employers to handle payrolls, taxes, and other employment related tasks. 

Other Third Party 

This option is for third parties who don’t come under the definition of a 3504 agent or CPEO but are still filing aggregate returns. 

2. Extended bank info fields on line 15 

On line 15 of draft Form 941, employers can request a refund via direct deposit by entering specific bank account details.  

Here’s how it works: 

If you overpay your payroll taxes, now you have two choices: 

1. Apply the overpayment as a credit to the next quarter 

2. Request a refund (via direct deposit) 

To request a refund, you must provide the following: 

• Line 15a  

Overpayment amount – Enter the extra tax amount you paid for the quarter. 

• Line 15b 

Refund or credit option – You can choose whether you want a refund or credit on your next return. 

• Line 15c 

Routing number – Enter your routing number to receive a refund directly to your bank account. 

• Line 15d 

Account type – Choose the account type: checking or savings. 

• Line 15e  

Account number – Enter the account number to deposit your refund. 

Note: If you are filing “Employer’s Quarterly Federal Tax Return” as an aggregate filer, you must attach Schedule R with Form 941. 

Why do these changes matter? 

• Simplify Tax Reporting 

By adding sections like the “Aggregate Return Filers Only” it is easier for businesses and third-party filers to report taxes without confusion about their role. It helps reduce errors and misreporting. 

• Speed Up Refund process 

With the new option to enter direct deposit details, you can now get your refund faster directly into your bank account. 

Note: Before filing Form 941, ensure your payroll records are accurate. You can generate accurate paystubs to match your payroll tax reports. 

Key Takeaways 

• A new checkbox section has been introduced in draft Form 941 to identify filers such as Section 3504 agents, CPEOs, or other third-party filers. 

• Employers can now enter bank account details to receive overpayment refunds via direct deposit. 

• The 941 form is still in draft status, so changes may occur in the final version.  

Conclusion 

The draft 2026 Form 941 introduces small but impactful changes aimed at efficiency and clarity. As always, stay updated with the TaxZerone for an official IRS release of Form 941. 

Also Read: File Your Q2 Form 941 with TaxZerone | Easy & Fast E-Filing