What To Know Before Filing 2025 Tax Returns

Tax News You Can Use | The Northern Trust Institute

 

Jane G. Ditelberg, Chief Tax Strategist

 

February 2, 2026

The first quarter is a busy time in the tax world as taxpayers and their advisors prepare to file returns for the preceding tax year. For 2025 returns, generally due on April 15, 2026, there are new procedural rules to consider. Some were announced with little fanfare and could have a significant impact on how taxpayers and professional advisors prepare and file returns. In this case, forewarned is forearmed.

Changes for Those Who Mail Returns or Payments

We are all familiar with the long lines at the post office on April 15. The media is filled with images of postal workers collecting stacks of envelopes late into the evening from taxpayers rushing to meet the midnight filing deadline. This year, however, due to changes at both the post office and the IRS, taxpayers may want to rethink being part of that throng if they want to ensure their return is timely filed.

The previous rule was that an envelope deposited in the post office box by midnight on April 15 was postmarked that day and considered timely. However, beginning in 2025, the post office began postmarking items on the date processed, which means that putting an envelope in the mailbox no longer means that it will be postmarked on that date — it could be postmarked several days later when processed. And without the postmark, a taxpayer will need other proof of timely mailing.

What does this mean for returns filed this year? Taxpayers who want to ensure that their returns are timely filed have several options to consider.

• Electronic filing. When the taxpayer or the tax preparer files the return electronically, there is an electronic confirmation that can serve as proof of timely filing.
• Obtaining proof of mailing from the post office. The post office offers several different services that include written proof of mailing. A certificate of mailing is like a receipt. Certified mailing with return receipt also includes proof that the item was delivered. Priority Mail and Priority Mail Express offer tracking, which will serve as proof of mailing.
• Using an alternative delivery service.  For federal filing, the IRS has a list of approved private delivery services that offer proof of sending. This list can be found in IRS Notice 2016-30 here n-16-30.pdf. Note that it is not enough to use FedEx, UPS, or DHL — one of the approved services provided by those carriers must also be used.

It is important to note that the change in the post office procedure will impact state tax filings as well as federal.

Phase-out of Paper Check Refunds for Individuals

Last March, upon the recommendation of the Department of Government Efficiency, President Trump issued Executive Order 14247, which required the Treasury Department to implement rules no later than September 30, 2025, to eliminate paper check payments to or from the Treasury Department. Payments to the Treasury include all tax payments, penalty and interest payments, and fees. Payments from the Treasury include all tax refunds. Paper-based payments are checks, including cashier’s checks, and money orders. The stated goal of this policy is to eliminate the risk of stolen checks and other fraud as well as to reduce costs and speed up receipt of refunds.

The Treasury Department issued notice IR-2025-94 (IRS to phase out paper tax refund checks starting with individual taxpayers | Internal Revenue Service) on September 23, 2025, to effectuate the changes mandated by the executive order. This order announced the phase-out of paper refund checks for individual taxpayers as the first step. Beginning with 2025 returns filed in 2026, individual taxpayers will need to provide direct deposit information with their tax return for any refunds due. Those who do not have a bank account are encouraged to open one. However, the Notice indicates that there will be other methods of delivering paperless refunds, such as pre-paid debit cards and digital wallets, and the possibility of limited exceptions to this rule during the phase-in period. This rule does not at present apply to trusts, estates or corporations receiving refunds.

Electronic Payment Mandate Under Review

The executive order directed the Treasury to study the feasibility of eliminating paper checks for tax payments. The feasibility study is underway, but there has not, to date, been a requirement for online payments for individuals or trusts. However, electronic payments do have some advantages with respect to security and timeliness. It is suitable to note here that there are multiple payment methods available for federal taxes. These include direct pay from a bank account, using a debit or credit card or digital wallet, paying through an IRS account (for individuals or businesses), using the Electronic Federal Tax Payment System, as well as payments in cash, by same day wire, by check or money order, or through an electronic funds withdrawal during e-filing.   

Selecting a payment method can be the personal choice of the taxpayer based on familiarity, security, and privacy. However, taxpayers also must consider which tax forms they are filing, the amount of tax being paid, and who the preparer is. For example, large payments must use the Electronic Federal Tax Payment System, and employer federal tax deposits may not be paid by credit card. Moreover, there are fees for using credit cards.

The most flexibility is available to taxpayers who establish an online account with the IRS. This is useful for more than just payments — it allows taxpayers to track the status of their return, view information from prior returns, apply for Identity Protection PIN numbers, and create payment plans. Both individuals and businesses may establish online accounts. It is helpful to do this ahead of the April 15 filing crush.

IRS Direct File Program Ended

In November 2025, the Treasury Department ended the IRS Direct File pilot program, and it is not available in 2026. It had previously allowed certain taxpayers with simple tax situations to electronically file federal returns for free, directly with the IRS. The OBBBA directed the Treasury to terminate the program, citing high costs and low rates of participation.

Despite that, there are still opportunities for some taxpayers to e-file for free. IRS Free File is a partnership with private tax software companies that offers qualified taxpayers access to the software for preparing and filing the most commonly used tax returns. It must be accessed from the IRS website: IRS Free File: Do your taxes for free | Internal Revenue Service. Going directly to the tax software site does not provide access to the free program.  Qualified taxpayers are those whose adjusted gross income is less than a fixed threshold (for 2024 returns it was $84,000 or less, regardless of filing status). Assistance from certified volunteers is also available through the Volunteer Income Tax Assistance (VITA) and Tax Compliance for the Elderly (TCE) programs.

Taxpayers who do not qualify for these programs can still use the IRS’s Free Fillable Forms to complete their returns. This is different from tax preparation software, but it can be a helpful resource if the taxpayer usually files paper returns. Otherwise, there is tax preparation software that usually permits electronic filing, sometimes for an additional fee. Paid tax preparers can also e-file a return.

Key Takeaways:

• The mailbox/postmark rules have changed. To ensure that a tax return or payment is timely, consider electronic filing and online payment, obtaining proof of mailing from the post office, or using an alternative delivery service.
• Individual taxpayers should prepare to provide direct deposit information when filing 2025 tax returns. If a taxpayer does not currently have a bank account, they may want to consider opening one before April 15.
• Taxpayers can consider establishing an account on the IRS website, which can be helpful for tracking tax returns and making online payments.
• The IRS Direct File program is not available for 2025 returns. However, qualified taxpayers may be eligible for free tax preparation and e-filing through the IRS Free File program.
• To avoid mailing a check or money order for tax payments, taxpayers can review the many payment options offered, including paying directly from a bank account, using credit, debit cards or digital wallets, or paying through an online account with the IRS or the IRS’s Electronic Federal Tax Payment System.