As the 2026 filing season opens there are a few key issues taxpayers should consider.
First, The
United States Postal Service (USPS) adopted new rules regarding postmarks. Effective December 24, 2025 postmarks may be
applied at regional processing centers, rather than local post offices where
mail or packages are dropped off. This
means that the mailed item may show a postmark date later than the date of when
the item was presented to the Postal Service.
The Postal Services notes that this is not a change in how it has
practiced but there have been adjustments to Postal Service transportation
operations that will result in some mail not arriving at originating processing
facilities the same day it was mailed.
The potential lack of alignment between when the item is accepted by the
USPS and when it is postmarked can represent a risk for timely filing federal,
state and local tax returns. Taxpayers
should consider electronic filing and payment options as they begin
filing. Other remedies could include
requesting manual postmark at the local office when the package is originally
dropped off or use Certificate of Mailing in combination with US Certified
mail.
Next, an executive order signed on March 25, 2025 requires
the modernizing of payments from America's Bank Account and to America's Bank
Account. In other words, the IRS is
moving away from paper checks to taxpayers and from receiving paper checks from
taxpayers. The order applies to both
individuals and businesses although the phaseout of individual refund checks
began after September 30, 2025. The
purpose of phasing out paper checks is to protect taxpayers because paper
checks are much more likely to be lost or stolen. Also, by depositing funds electronically the
refund process is expedited. Refunds
issued through direct deposit generally take around 21 days or less and paper
checks can take up to 6 weeks or longer to reach the recipient. For the 2026 filing season taxpayers are
highly encouraged to include bank information with their 2025 income tax
returns for direct deposit or electronic withdrawal. If no bank information is provided the
taxpayer could receive correspondence from the IRS with instructions on what to
do next. Other options like a digital
wallet or prepaid debit card can also be used if it has an account and routing
number. The IRS has provided the
following links for consideration in opening a free or low-cost account if you
do not have one. Visit FDIC: GetBanked and MyCreditUnion.gov for
account options.
As mentioned above this order also applies to modernizing
payments to America's Bank account. Individuals
and businesses, except for Trust and Estates, can utilize electronic withdrawal
by including bank information with the return being filed, IRS Direct pay (https://www.irs.gov/payments/direct-pay-with-bank-account),
or EFTPS for payments over $10 million.
Currently, Trusts and Estates, cannot utilize auto withdrawal or direct
deposit or IRS Direct Pay. For a Trust
and Estate to pay electronically it would have to make arrangements with its
banking institution to make a wire to the IRS or use EFTPS. Wiring funds can be costly and EFTPS requires
enrollment and verification which can take 7 business days or more.
As we head into the 2026 filing season we recommend
taxpayers prepare for the changes coming with the USPS and modernizing
payments. Plan to get to the postal
service in advance of the deadlines and when needed get a manual postmark from
the local office. Additionally, taxpayers
should be prepared to provide banking information when filing so they can get
refunds electronically and when applicable, especially if you are a Trust or
Estate, consider applying now for EFTPS so that payments to the IRS can be made
timely and electronically.