Key points covered in this article:

  • The IRS is phasing out paper refund checks, requiring most taxpayers to use direct deposit or secure electronic methods for refunds and payments starting in the 2026 tax season.
  • Taxpayers can choose from various secure digital payment methods, including IRS Direct Pay, debit/credit cards, and the Electronic Federal Tax Payment System (EFTPS).
  • New USPS rules mean postmark dates now reflect when mail is processed at sorting facilities, potentially affecting deadlines for mailed tax returns and payments.


In guidance released in January 2026, the IRS said it expects most refunds to be delivered by direct deposit or other secure electronic methods and urged taxpayers to use electronic options to pay any balance due. Paper checks for payments will still be accepted for now, but the agency is clearly steering taxpayers toward digital methods.

For the 2026 filing season, that means more people will need to provide routing and account numbers to receive a refund by direct deposit, and more taxpayers will use online payment tools instead of mailing a check. 

Although this guide is helpful for any employer to share with their employees, workers in hospitality, construction, retail, and agriculture (as well as independent contractors and gig workers) are less likely to have traditional bank accounts and may need extra help navigating a tax season with different rules. Further, trustees, payroll providers, and other third parties could be impacted as well.

The Big Change: Why the IRS is Going Digital

For decades, receiving a paper check in the mail has been a standard option for tax refunds. However, checks are generally slower to deliver, easier to lose, and more vulnerable to theft than electronic refunds. 

To address that, IRS began phasing out paper refund checks on September 30, 2025. For the 2026 tax season, most taxpayers will need to be prepared for refunds to be delivered by direct deposit or another secure electronic method. The IRS also says direct deposit is the fastest way to get a refund, and e-filed returns with direct deposit are typically processed in under 21 days.  

Even though direct deposit tax refunds are usually associated more with individuals, it matters for businesses, too. Starting this tax year, the IRS plans to add direct deposit to most business tax returns, enabling this feature for faster refunds. Businesses that utilize bulk check payments for payroll deposits or trustee accounts can expect to see additional guidance for more digital payment options. 

Embrace Direct Deposit for Faster Refunds

To set this up, your employees will need to provide their bank account information to the IRS, specifically, their routing and account numbers, when you file your taxes.

If your employees do not have a bank account, you may be able to have a refund issued via prepaid debit card, digital wallet, or a mobile payment app. Check with your financial institution or app provider to confirm they support direct deposit and to get the correct routing and account numbers associated with your account.

International taxpayers without bank accounts should keep using their existing method(s) to pay the IRS and receive refunds. Wire transfers are still an option aside from paper checks, and the IRS is working to expand international payment options. 

Taxpayers can check the status of their refund using the IRS’s Where’s My Refund? tool after you file.

Managing Your Tax Payments Electronically

Just as refunds are going digital, taxpayers are given the option to make tax payments online. The IRS offers several secure and convenient ways to pay your taxes online.  

This is generally a more secure method than mailing a check, especially because paper checks have become a bigger target for mail theft and check fraud. When a check goes missing or gets altered in transit, the IRS may never receive the payment you intended to send. 

For taxpayers mailing payments to the IRS, a stolen or altered check can result in a missed tax payment deadline, leading to potential penalties and interest, all while your funds are in the wrong hands. Using these official IRS channels is the safest way to ensure your payment is received and processed correctly.

For existing PBMares clients, SafeSend allows tax returns to be completed electronically and the ability to make payments. When clicking on any payment link, federal or state, it will direct you to the taxing authority website to make online payments. 

Here are the most common electronic payment methods: 

  • IRS Direct Pay: This free and secure service allows you to pay your taxes directly from your checking or savings account. You can use it to pay your tax bill or make estimated tax payments without needing to create an online account.  Taxpayers can also schedule future tax payments in advance such as the quarterly individual estimated income tax payments. 
  • Debit, Credit, or Digital Wallet: You can pay your taxes online or by phone using a debit card, credit card, or digital wallet like PayPal or Click to Pay. Be aware that third-party payment processors charge a fee for this service. 
  • Electronic Federal Tax Payment System (EFTPS): This is a free online service from the Treasury Department that is available 24/7 for individuals and businesses. You can schedule payments up to 365 days in advance. 
  • Electronic Funds Withdrawal: When your taxes are filed through a tax professional, you can authorize an automatic withdrawal from your bank account. 

Creating an IRS Online Account is another powerful tool. It allows you to view your tax history, see your balance owed, and make payments online. Many states offer electronic tax payment options, and taxpayers should visit their state Department of Revenue website to learn more. 

Prepare Now for a Simpler 2026 Tax Season

By preparing for an all-electronic system now, taxpayers can avoid any potential issues and ensure their tax experience is as seamless as possible. 

Here’s a quick checklist to get ready: 

  • Set Up for Direct Deposit: If you don’t already use it, locate your bank routing and account numbers so you’re ready when you file. 
  • Explore Electronic Payment Options: Familiarize yourself with the digital payment methods offered by the IRS to find the one that works best for you. 

This transition marks a new chapter in tax administration—one that prioritizes speed, security, and convenience for all taxpayers.  

USPS Postmark Changes: What It Means for Tax Filings

The way the U.S. Postal Service (USPS) handles postmarks has recently changed, and it’s important for anyone mailing time-sensitive documents to understand the implications. Effective December 24, 2025, a new rule clarifies how postmarks are applied, which could affect deadlines for tax returns, legal documents, and even ballots. 

Previously, many assumed the postmark date reflected the day they dropped a letter in a mailbox. However, the postmark date now officially represents when the mail is first processed at a regional sorting facility. This means your mail might not be processed on the same day you send it, resulting in a postmark that is a day or more later than your drop-off date. 

This delay can create issues for last-minute filers. The IRS considers a tax return filed on time if it is postmarked by the due date. If you mail your return on April 15th, but it doesn’t get processed and postmarked until April 16th, your filing could be considered late, potentially leading to penalties and interest. 

To avoid any issues with time-sensitive mail, consider these tips: 

  • Mail Early: The simplest solution is to mail important documents several days before the deadline. This provides a buffer for any potential processing delays. 
  • Request a Manual Postmark: For peace of mind, you can take your mail directly to a post office counter and ask a clerk to manually postmark it. This hand-stamped postmark will show the exact date the USPS accepted your item. 
  • Use Certified or Registered Mail: Services like Certified Mail provide a mailing receipt with the date of acceptance, which serves as official proof of timely mailing. While it comes at an extra cost, it offers a record for your most critical documents. 

While the IRS encourages electronic filing and payments, if you must mail documents, being aware of these USPS changes is crucial. Planning ahead and taking extra steps to verify your mailing date will ensure your tax documents arrive on time.

Even though the IRS is transitioning to electronic processes, some taxpayers may still utilize paper checks. Groups including international taxpayers, taxpayers in disaster zones, and other vulnerable groups can still use the mail to send in paper checks to the IRS. Third-party providers, like payroll providers and trustees, will receive additional guidance from the IRS. 

Even if PBMares or other tax provider handles your taxes, being aware of changes at the IRS can help taxpayers know what to expect and have fewer surprises during tax season.
For the most up-to-date information and resources on these changes, visit the U.S. Department of the Treasury’s official resource page.