Alert to Taxpayers: Scam Text Messages Claiming to Be from the Minnesota Department of Revenue
The Minnesota Department of Revenue has issued a warning about fraudulent text messages falsely claiming to be from the department. These messages urge recipients to click a suspicious link to update banking information to receive a tax refund. This issue has not only occurred with Minnesota, but in other states around the U.S. as well.
Key Points:
· The scam messages are not from the state’s Department of Revenue.
· There has been no breach of the department’s systems or taxpayer data.
· The Department will never request personal or financial information via unsolicited texts or emails.
If You Receive a Suspicious Text:
· Do not click the link.
· Report the message as spam/junk and delete it.
· If you clicked the link and entered any personal information, contact your bank immediately.
Last Chance for Individuals to Enroll in EFTPS
In alignment with Executive Order 14247, Modernizing Payments to and From America’s Bank Account, the IRS has announced that October 17, 2025, will be the final day for individuals to enroll in the Electronic Federal Tax Payment System (EFTPS). This update is currently being communicated through a recorded message on the EFTPS toll-free line. Individuals who enroll by the deadline may continue using EFTPS to make payments for the time being. However, the IRS plans to discontinue EFTPS access for individual taxpayers sometime in 2026 and encourages early transition to alternative electronic payment methods.
Those not enrolled in EFTPS must use the IRS Online Account for Individuals or IRS Direct Pay to submit payments electronically. EFTPS remains a free, secure service provided by the U.S. Treasury, allowing users to make federal tax payments online or by phone. To retain access, individuals must complete enrollment by visiting www.eftps.gov before the October 17 deadline.
IRS Warns of Rising Social Media Tax Scams
The IRS is warning taxpayers about a sharp rise in fraudulent tax schemes spreading on social media, particularly involving misuse of credits like the Fuel Tax Credit and the Sick and Family Leave Credit. Since 2022, misleading posts and individuals falsely claiming to be tax professionals have encouraged ineligible taxpayers to file inaccurate returns, resulting in denied refunds and substantial penalties. According to IRS Director James Clifford, these schemes have already led to over $162 million in penalties, with thousands of claims rejected. Common tactics include promises of “easy” refunds and advice to ignore IRS correspondence—actions that can trigger a $5,000 frivolous return penalty and increased IRS scrutiny.
Taxpayers who believe they may have been misled or filed incorrect returns should take immediate action. The IRS advises amending inaccurate filings using Form 1040-X, responding promptly to any IRS notices, and consulting a qualified tax professional for guidance. Remaining cautious and skeptical of tax advice found on social media is critical to avoiding delays, penalties, and further complications with the IRS.
IRS Begins its Shift to Paperless Tax Refunds
The IRS has announced it will begin phasing out paper tax refunds starting September 30, 2025, as part of a broader transition to electronic payments. This move follows Executive Order 14247, issued in March, which mandates the end of paper checks for all federal disbursements, including tax refunds. While the change is welcomed by many for its efficiency, it has raised concerns among those without access to traditional banking services. Currently, only 7% of individual taxpayers—approximately 6.5 million people—receive refunds by paper check. The IRS has confirmed that limited exceptions will be allowed for those who face undue hardship or lack access to electronic payment methods.
To ease the transition, the IRS is encouraging unbanked taxpayers to explore options such as free or low-cost bank accounts, prepaid debit cards, or digital wallets. Treasury Secretary Scott Bessent is expected to address the upcoming changes and potential challenges during this week’s meeting of the Financial Literacy and Education Commission. While the shift for disbursements is firm, the move toward electronic payments for incoming federal payments (such as tax payments) will proceed more gradually, with existing options remaining in place until further guidance is issued ahead of the 2026 filing season.
Minimum Wage Increases Announced for Minneapolis and St. Paul in 2026
Both Minneapolis and St. Paul have announced updates to their minimum wage rates effective in 2026. In St. Paul, the minimum wage for macro and large employers (101+ employees) will increase from $15.97 to $16.37 per hour on January 1, 2026. Rates for small employers (6–100 employees) and micro employers (5 or fewer employees) will remain at $15.00 and $13.25 per hour, respectively, until July 1, 2026, when they will increase to $16.37 and $14.25 per hour. In Minneapolis, the minimum wage will rise uniformly for all employers, regardless of size, from $15.97 to $16.37 per hour, also effective January 1, 2026.
