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 actual date it was presented to the Postal Service.
The Postal Services notes there is no change in its processes, but there have been adjustments to Postal Service transportation
operations and some mail may not arrive at originating processing
facilities on the same day it was mailed.
The potential mismatch between the date an item is accepted by the
USPS and the date it is postmarked can affect the timely filing of federal,
state and local tax returns. Therefore, taxpayers
should consider electronic filing and payment options. Other remedies include
requesting a manual postmark at the local office at time of drop off or using Certificate of Mailing together with US Certified
mail.
Next, an executive order signed on March 25, 2025, requires electronic payments to and from America's Bank Account. In other words, the IRS is
moving away from sending paper check refunds and 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. According to the EO, 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, while 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 further instructions. Other options like a digital
wallet or prepaid debit card can also be used if they include an account and routing
number.
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, direct
deposit, and IRS Direct Pay. For a Trust
and Estate to pay electronically the trustee should make arrangements with their banking institution to initiate a FedWire or use EFTPS. Wiring funds can be costly and EFTPS requires
enrollment and verification which can take 7 or more business days.
As we head into the 2026 filing season we recommend taxpayers prepare for the upcoming changes in USPS and electronic payments.
- Plan to get to the postal service in advance of the deadlines and request a manual postmark when needed.
- Prepare to provide banking information so refunds can be issued electronically
- When applicable, especially trusts and estates, consider applying now for EFTPS so that electronic payments to the IRS can be made timely.