Specifically, the rule clarifies that the date displayed on a machine-applied postmark represents the "date of the first automated processing operation" performed at a processing facility, rather than the date the USPS initially took possession of the mail piece.

Last year, we issued an Alert about the new requirement for all payments to and from the federal government to be done so electronically, as mandated by Executive Order 14247, “Modernizing Payments to and from America’s Bank Account.” While the implementation of the electronic payment and refund mandate might seem relatively straightforward, like everything in life, the devil is in the details. Recent guidance has been issued that clarifies how the phaseout of paper checks will be implemented and how it will be handled in the interim.

Payments from the federal government, most commonly tax refunds, will cease to be made in the form of paper checks, with very limited exceptions, exactly as the executive order states. Those limited exceptions have not yet been specifically defined, but will include hardship situations, such as taxpayers who do not have access to banking, and situations with unique legal and/or procedural requirements, such as deceased taxpayers.

For most taxpayers who do not meet one of these exceptions, effective September 30, 2025, the Internal Revenue Service (IRS) will only send their refund electronically. If a taxpayer who is due a tax refund opts to not provide their banking information on their tax return, they will receive a notice from the IRS. In order to ultimately receive their refund, they will need to respond to the notice and either provide banking information or details as to how they qualify for one of the exceptions.

Payments to the federal government are another story. When we first wrote on this mandate, we were concerned that the IRS might stop accepting paper checks altogether. However, the recent guidance clarifies that paper checks will still be accepted until further notice. It is worth noting, however, that all recent guidance from the IRS emphasizes that making payments electronically is the preferred method and they will stop accepting paper checks in the near future, again with limited exceptions.

Postmark Rule Change Affects Timely Filing and Payment

For decades, federal tax laws and regulations relied on a “timely mailed, timely filed” doctrine, which is codified in Internal Revenue Code Section 7502. Taxpayers applied the doctrine as follows: If you mailed a tax return, payment, refund claim, extension application or U.S. Tax Court petition by the deadline, the IRS treated it as timely filed even if delivered after the deadline. Recent U.S. Postal Service (USPS) practices have changed that reality and created a serious trap for anyone who relies on last-minute mailing.

The USPS recently adopted a final rule formally defining postmarks and identifying the types of markings that qualify as such. This new definition, effective December 24, 2025, directly impacts the application of the “timely mailed, timely filed” doctrine to tax deadlines for important tax-related mailings.

Specifically, the rule clarifies that the date displayed on a machine-applied postmark represents the "date of the first automated processing operation" performed at a processing facility, rather than the date the USPS initially took possession of the mail piece.

How This Impacts You

Potential Delays

Because most postmarks are applied at regional processing facilities, the postmark date may be later than the date the mail was first accepted by the USPS. For instance, mail dropped in collection boxes can be postmarked days after it was deposited.

Operational Reality in the Tax World

Now that the rule has taken effect, the postmark date is no longer a "perfectly reliable indicator" of the date of mailing. For example, a tax return check dropped off to USPS on April 15 may be postmarked April 16 or later. Even worse, sometimes USPS postmark machines do not even apply a postmark. The IRS could then treat this filing as late, which will trigger penalties and interest.

How to Ensure Same-Day Postmark

To assure a postmark is applied on the same day a document is released to the USPS, you should strongly consider specific retail services. The USPS’s final rule outlines the following methods to ensure same-day postmarks:

• Request a manual postmark: Customers may present a mail piece at a retail counter and request a "manual (local) postmark.” This postmark is applied at the time of acceptance, so the date aligns with the date the USPS took possession.
• Postage validation imprint (PVI): When a customer pays for postage at a retail counter, the PVI label applied by the postal employee also indicates the date of acceptance.
• Certificates of mailing: Customers may purchase a certificate of mailing or use registered or certified mail to obtain a receipt that serves as evidence of the date the item was presented for mailing.

These new postal rules certainly complicate paper tax mailings, but amplify the benefits and ease of electronic payments (and filings, where applicable).

TAG’s Perspective

Our perspective on the matter has not changed since our last Alert: Electronic payments are objectively more secure and more efficient. We continue to encourage our clients to start getting in the habit of remitting tax payments electronically, as they will soon be required to do so—and to avoid the risks associated with using the mail, including exposure to tax-related identity theft and refund fraud, both which continue to rise year after year. Additionally, any taxpayers receiving a refund will need to have it directly deposited into their bank account, whether you include your bank information on your tax return for your refund to be automatically deposited, or you later wait for the IRS to send you correspondence. Either way, you are going to need to provide your bank information to the IRS, and your refund will be directly deposited into your bank account. With that being the case, we continue to recommend for our clients who are entitled to tax refunds to include their bank account information on their return to avoid any unnecessary correspondence and to make the process smoother and more secure and, perhaps more importantly, to secure your refund swiftly.

Sadly, as a result of the continued unreliability of the USPS and the newly issued final regulations, for all time-sensitive documents, we strongly encourage the use of use certified mail with return receipt requested or one of the designated private delivery services such as FedEx or UPS. The eligible services are listed on the IRS website.

For More Information

If you would like more information about this topic or your own unique situation, please contact John I. Frederick or Michael A. Gillen. For information about other pertinent tax topics, please visit our publications page.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.