We consider the problem of implementing perfect reconstruction modulated polyphase filter banks having infinite impulse response (IIR) subfilters in systems that must process infinite length 1-D inputs. This task is complicated by the fact that the synthesis bank needed to ensure perfect reconstruction in such a system generally has noncausal or reverse-time filter sections. To overcome this limitation, we develop a number of unique buffering schemes that make possible the implementation of such reverse-time filters with infinite length signals. For the important special case when the polyphase subfilters are allpass, we also present a method that allows for very efficient implementation of tree-structured filter banks and wavelet transforms. We then describe a wideband coding algorithm based largely on work done by Lokhoff (1991) and Johnston (1980, 1988). Using this algorithm, we compare the performance of IIR filter banks with that of more conventional pseudo-QMF and tree-structured QMF banks. The results of these comparisons indicate that one of our filter banks-a tree-structured allpass bank-achieves slightly better performance than equivalent FIR banks in terms of rate and distortion (both objectively and subjectively measured) while requiring lower computational complexity.