2026 Tax Alert: IRS refunds move to electronic payments

Effective September 30, 2025, the IRS no longer issues paper checks for tax refunds. This change stems from an Executive Order signed on March 25, 2025. All IRS payments, including refunds, must now be processed electronically, with limited exceptions for individuals without access to banking services.

What This Means for You

• Refunds: If you expect a refund and your return is on extension, include your banking details when filing. Omitting this information could delay your refund.
• Payments: The Executive Order also requires federal tax payments to be made electronically “as soon as practicable.” While no firm date is set, taxpayers should prepare now, especially those who have historically paid by check.

Action Steps for Taxpayers

• Set up an IRS online account to manage payments securely and track transactions.
• Verify your banking details.
• Explore payment options, such as IRS Direct Pay and the Electronic Federal Tax Payment System (EFTPS). Both are free and allow you to schedule payments in advance.

Important for Trusts and Estates: EFTPS remains the primary option. Enrollment requires a mailed PIN, so plan ahead.

Benefits of Electronic Payments

Electronic payments offer significant advantages, including faster processing without mail delays, enhanced security that reduces the risk of lost or stolen checks, and immediate confirmation so you have proof of payment for your records.

If you must mail tax documents: Use Certified Mail with Return Receipt for proof of mailing and delivery. Regular mail without tracking can lead to penalties if returns aren’t received.

Key Deadlines

• April 15: Standard filing deadline.
• October 15: Extension deadline (tax owed still due April 15).

We Can Help

Managing taxes is easier when you go digital. Electronic filing and payment simplify the process, reduce errors, and keep your information secure. Using IRS online tools helps you stay organized, avoid last-minute stress, and remain compliant with federal and state requirements.

Need assistance? Our team is ready to guide you through every step of your tax filing.

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The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.