Beginning September 30, 2025, paying taxes via paper checks will no longer be accepted and refund checks will no longer be issued. This is due to Executive Order 14247 (EO) which was signed by President Trump in March of 2025. This EO is meant to modernize the federal payment systems by eliminating paper checks. This applies to all federal agencies, including the IRS, and will change how taxpayers pay their taxes and receive refunds going forward.
What Payments are Impacted:
- Tax Payments (including estimated tax payments)
- Tax Refunds
- Benefit Payments
- Vendor Payments
- Intragovernmental Transactions
Electronic Payment Options:
The IRS offers multiple options for electronic transactions, including:
- IRS Direct Pay: free direct transfers from bank accounts
- Electronic Funds Deposit and Withdrawal (integrated with e-filing)
- Debit and credit card payments (note: fees may apply)
- Digital Wallet (note: fees may apply)
- Electronic Federal Tax Payment System (EFTPS): a no-cost online or phone option requiring enrollment
- Wire Transfers
Special Situations:
- Expats and US Citizens living abroad – Foreign bank accounts generally don’t work with the IRS direct pay system. Confirm if your current financial services provider offers US banking services or open and account with a US based bank.
- Estates and Trusts can make electronic payments using the EFTPS and via ACH electronic funds withdrawal when e-filing. Direct deposit of refunds is not currently supported. Please consult a Meaden & Moore tax professional for guidance.
Preparing for the Transition (What to do NOW):
- Review payment options and decide which one works best for you. Visit the IRS website to explore options Payments | Internal Revenue Service
- If needed, set up your account with the IRS now to avoid last minute delays (some payment options require that you have an account with the IRS). Establishing accounts well before the September 30 deadline is strongly recommended.
- While some organizations have requested extensions, none have been granted and taxpayers should plan to comply by the September 30, 2025 deadline.
- Questions? Please consult a Meaden & Moore tax professional for guidance.
Exceptions to Electronic Payment Mandates:
The following situations are exempt from the electronic payment mandate.
- Taxpayers without access to banking services.
- Certain emergency payments where electronic payments will cause undue hardship.
- Matters of national security and law-enforcement where electronic transactions are not desirable.
- The Treasury Secretary may grant additional exceptions as needed.
Ready to Make the Switch to Electronic Federal Tax Payments?
Ensure your payments and refunds are secure and timely by transitioning away from paper checks before the September 30, 2025 deadline. Our team is here to help you understand your electronic payment options and guide you through the process. Have questions or need assistance? Reach out today.