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Our friends at Whitley Penn sent out a reminder on this blistering cold blue Monday.
Beginning today, the Internal Revenue Service will open the 2026 filing season and begin accepting 2025 federal income tax returns, marking a significant shift in how taxpayers pay taxes and receive refunds.
A key change for 2025 and future filings is a new mandate requiring that nearly all federal tax payments and refunds be made electronically. The move away from paper checks is intended to improve efficiency, reduce government costs, and limit fraud and theft.
The change stems from a March 2025 executive order issued by President Donald Trump. Under the order, the Internal Revenue Service began phasing out paper refund checks on Oct. 1, 2025.
Beginning with filings for the 2025 tax year, taxpayers are expected to include banking information with their federal tax returns so refunds can be issued via direct deposit or electronic funds transfer. If banking information is not included, the IRS will contact the taxpayer by U.S. mail to request it. During this process, no refund check will be issued, and receipt of the refund will be delayed several weeks.
The executive order also requires taxpayers to make all federal tax payments electronically, including estimated tax payments. While IRS guidance on implementation is still pending, taxpayers are encouraged to begin making electronic payments as soon as possible in anticipation of that guidance. Once procedures are finalized, failure to comply with the electronic payment requirement may result in penalties.
Several electronic payment options are already available. IRS Direct Pay allows individuals to make estimated payments, pay balances due with Form 1040, submit extension payments with Form 4868, and pay balances due on amended returns. Taxpayers may also establish an IRS Online Account to schedule payments, check refund status, and view tax records. The Electronic Federal Tax Payment System, or EFTPS, remains available for businesses, trusts, and estates, though new individual enrollments are no longer accepted.
Additional methods may include debit or credit cards, ACH transfers, digital wallets, and prepaid cards, subject to fees and IRS support. Certain taxpayers may qualify for limited exceptions, including individuals without access to banking services, taxpayers over age 65, international taxpayers, and U.S. citizens living abroad. Further guidance on exceptions is expected.
Unless an exception applies, taxpayers are advised to implement electronic payment processes immediately to ensure timely refunds and compliance. More information is available at IRS.gov/payments.