The IRS has announced several important updates that tax professionals should be aware of regarding e-file operations, the issuance of EFINs and PTINs, and changes to how paper check refunds will be processed during the upcoming filing season.
IRS 1040 and Business E-File Production Shutdown
This year, the IRS e-file production shutdown for individual federal tax returns will be extended. The shutdown will now occur in late December, aligning with the federal business tax return production shutdown. Preparers should ensure all electronic filings are completed before this date to avoid delays.
Obtaining New EFINs and PTINs
Tax preparers who need to obtain a new Electronic Filing Identification Number (EFIN) or Preparer Tax Identification Number (PTIN) for the upcoming filing season should apply well before the 2026 filing season begins.
Due to the government shutdown and a reduction in IRS staff, processing times for both EFIN and PTIN applications may be longer than usual. Early application is strongly recommended to ensure timely approval.
Change in How the IRS Will Release Paper Check Refunds
Beginning January 2025, the IRS will change how it processes refunds for taxpayers who do not request direct deposit on their individual federal returns.
If a taxpayer does not include direct deposit information on their 2025 return, the following will occur:
- If the taxpayer does not respond to the notice, a paper check will be issued for the refund after six weeks.
- The refund will be held for six weeks.
- The taxpayer will receive a notice requesting bank information to allow for direct deposit. They will be directed to provide their bank account details through their IRS online account. Once the IRS receives this information, the refund will be direct deposited shortly thereafter.
This policy change is being implemented in response to Presidential Executive Order 14247 on payments, issued in March 2025.
