As the tax filing season begins, taxpayers should keep in mind that the process for paying taxes, receiving refunds and filing tax returns could be a little different this year. The IRS continues to phase out paper checks in favor of electronic payments and has expanded e-File to gift tax returns. Additionally, the United States Postal Service (USPS) issued final regulations that may cause delays due to a revised USPS postmark process.

Electronic payments and refunds

The government has taken another step closer to wholly requiring electronic payments in accordance with Executive Order 14247, Modernizing Payments to and from America's Bank Account. To assist taxpayers with the new electronic payment rules, the IRS issued a Fact Sheet (FS-2026-02) with guidance in the form of frequently asked questions (FAQs).

According to the FAQs, the IRS generally stopped issuing paper refund checks to individuals on September 30, 2025. For individuals without a traditional bank account, the IRS will establish alternative electronic payment methods, such as through mobile apps and prepaid debit cards. The IRS is still accepting payments in the form of checks and money orders for now but plans to phase out paper checks and money orders as forms of payment for tax liabilities and other transactions. It has not yet stated whether this phase-out will occur before the filing due date for 2025 returns.

For businesses and trusts, the IRS added the direct deposit option to most business and trust tax return types and will continue to phase out paper checks. The IRS expanded its digital payment system for businesses to make electronic payments to the IRS. The IRS currently allows businesses to make payments via debit/credit card or digital wallet, IRS Direct Pay, IRS Business Tax Account or Electronic Federal Tax Payment System. It expects to issue guidance for businesses that rely on bulk check payments.

While the IRS revised Form 1041, US Income Tax Return for Estates and Trusts, to allow filers to complete details for electronic refunds, the FAQs recognize that some trust filers may not have the legal authority (or other means) to establish electronic payments yet. The FAQs note that paper checks will still be accepted where electronic payment methods are not available to these trustees.

Gift tax returns

The IRS has added Modernized e-File (MeF) for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States. However, some software providers are still working to incorporate the ability to e-File these forms into their preparation software. When the software allows it, taxpayers should use MeF to file those forms for gift and generation-skipping transfer tax purposes. To use the MeF to file those forms, taxpayers must authorize a reporting agent to prepare, sign and e-file those forms, or become an authorized e-file provider by completing the IRS e-file application and choosing the provider role.

The IRS has a variety of resources for taxpayers about the MeF on its website.

USPS postmark process

The USPS issued final regulations on the postmark process, which indicated that a postmark confirms the USPS accepted mail and that it was in the USPS's possession on that date, but "does not necessarily indicate the first day that the [USPS] had possession" of it. The final regulations explain that the postmark applied at a processing facility may be later than the date the USPS first accepted the mail.

The final regulations include options for customers who want proof of the date the USPS first accepted the mail. Customers may request a manual postmark at any post office, station or branch, so that the postmark aligns with the date on which the USPS first takes possession. Otherwise, customers should send mail by certified mail to ensure it is postmarked on the day USPS receives it.

Because the date on which the USPS receives a tax return is important for filing purposes, taxpayers should consider sending their return via certified mail with return receipt requested, as the mailing receipt for the certified mail will include the date on which the USPS took possession of the return. Taxpayers also should consider filing electronically.

Possible IRS delays

In a recent memorandum to the IRS, the Treasury Inspector General for Tax Administration (TIGTA) noted that the IRS may experience significant delays in processing returns (including payments and refunds) for the upcoming filing season. As of last October, the IRS has lost nearly 19% of its workforce. TIGTA further noted that IRS filing-season programs devoted to processing returns, resolving return errors, and assisting taxpayers by phone lost 17% of its workforce. In addition to this attrition, the IRS has only hired 2% of the 2,200 employees it was authorized to hire to process returns for the 2026 filing season.

Implications

Taxpayers should consider filing returns and making payments electronically this filing season. Even after choosing electronic methods, though, delays are to be expected. Consult with your tax return preparer on the best way to manage matters during the 2026 filing season.