As we kick off the 2026 calendar year, several federal administrative changes are affecting how taxpayers receive refunds and remit tax payments. To help ensure your filings and payments remain timely and accurate, we have summarized the most important updates below.

Phase-Out of Federal Paper Checks

Effective September 30, 2025, the federal government has discontinued issuing paper checks for most federal tax refunds. Direct deposit is now the standard method for receiving refunds. As a result, you may be asked by your tax preparer or the IRS to provide or confirm bank account information to facilitate direct deposit while completing your tax return.

In addition, the Treasury is in the process of phasing out its acceptance of incoming paper checks. Given these changes, we recommend using secure federal payment portals whenever possible: either using the IRS.gov/pay site for one-time payments or creating an account with the IRS through ID.me for individuals and EFTPS.gov for trusts and businesses. These platforms provide immediate confirmation for your records and eliminate reliance on postal processing. This shift aligns with new federal mandates, reduces the risk of lost or stolen mail, and generally results in faster posting of payments and refunds.

Electronic Payment Requirements for Trustees

Trustees should be aware that the IRS now requires federal tax payments for trusts to be made through the Electronic Federal Tax Payment System (EFTPS). Unlike other electronic payment options, EFTPS requires a formal enrollment process to verify the entity’s identity. Once enrolled, please keep in mind that EFTPS payments must be scheduled by 8:00 p.m. ET at least one calendar day before the tax due date to be considered timely.

• Action required: Enroll the trust at EFTPS.gov. For EFTPS enrollment, trusts are treated as a “Business” and should select that option under “Enroll me as”
• PIN process: After enrolling online, the IRS will mail a physical Personal Identification Number (PIN) to the address of record.
• Timing considerations: The PIN is sent via standard mail and typically arrives within 7 to 10 business days. Payments cannot be made until the PIN is received and the account is fully activated; we would encourage you to enroll as soon as possible.
• Lost PIN: If you have misplaced your EFTPS PIN, contact EFTPS at 1-800-555-4477. After identity verification, EFTPS can process a payment by phone and will mail a replacement PIN.

Important Note on USPS Postmarking

The U.S. Postal Service has changed certain operational practices, and local post offices may no longer apply same-day postmarks. To ensure payments and other time-sensitive filings are legally recognized as mailed ahead of the tax deadline, we recommend using the electronic payment options offered by the IRS and many states.  If a paper mailing is required, you should use Certified Mail so that you receive a confirmation receipt to prove that it was timely mailed.

The IRS is not alone in mandating electronic payments as many states have adopted similar programs.  Hopefully, this will help combat various types of fraud and keep data more secure.  We encourage you to enroll in these IRS programs soon to avoid any future delays in payments or refunds. If you have questions about these new requirements or need assistance with EFTPS enrollment, please contact your Snyder Cohn advisor.

 

by: Zane Sanchez