Beginning September 30, 2025, all U.S Treasury payments currently issued via paper check, including Social Security benefits, tax refunds, and all payments made to the Internal Revenue Service, must be made electronically. This change comes from Executive Order (EO) 14247 signed by the President on May 25, 2025. The EO will change how taxpayers pay their taxes and receive refunds going forward.
Impact on federal income tax payments and refunds
As of the effective date, the Internal Revenue Service (IRS) will no longer accept paper checks for federal tax payments and will no longer issue tax refunds via paper check. This is part of the push from federal agencies, including the IRS, to modernize the federal payment system and mitigate fraud risks associated with paper checks.
This change goes into effect on September 30, 2025, final filing deadline for trusts and before October 15, 2025, final filing deadline for individual and corporate taxpayers that filed an extension of time to file their income tax return. Therefore, this will affect certain taxpayers who have not yet filed their 2024 income tax return.
This change impacts both U.S. taxpayers and foreign taxpayers who pay U.S. income tax. Taxpayers who are not accustomed to making electronic payments will need to prepare accordingly.
Electronic payment options
The IRS has several electronic payment options available to taxpayers, including:
- Direct pay (U.S. bank account is generally required)
- Electronic Federal Tax Payment System (EFTPS)
- Debit and credit card payments (processing fees may apply)
- Digital wallet (processing fees may apply)
- Wire transfers
- Electronic funds deposit and withdrawal
The electronic payment options listed above are available to individual, business, and fiduciary taxpayers, except direct pay, which is only available to individuals and businesses.
If you do not already make federal income tax payments electronically, consult your tax advisor as soon as possible to discuss the best option for your scenario. Certain payment options require you to have an account set up with the IRS. Therefore, registering ahead of the deadline is advised to avoid delays.
Taxpayers who are anticipating a federal income tax refund will need to set up direct deposit of their refund. Provide your tax return preparer with your bank information now to ensure seamless processing.
Exceptions to the electronic payment mandate
The IRS may grant limited exceptions in cases where electronic payments are not feasible, including:
- Taxpayers without access to banking services.
- Certain emergency payments, if paying electronically, 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.
Don’t navigate it alone
Every business has unique circumstances, and navigating new tax requirements can feel overwhelming. Your accountant is the best resource to help you stay compliant and avoid costly mistakes. If you have questions about the electronic payment mandate or how it applies to you, reach out to your accountant for guidance.
Disclaimer: This website post is provided for general informational purposes only and does not constitute legal, tax, accounting, investment, or other professional advice. It should not be relied upon as a substitute for consultation with qualified professional advisers who are familiar with your specific circumstances. Before making decisions or taking action, consult an appropriate adviser. Portions of this content may have been reviewed, revised, or refined with the assistance of artificial intelligence (AI) tools and are subject to human oversight. The information is provided "as is" without any representation or warranty, express or implied, regarding its accuracy, completeness, or timeliness. Articles published on this website are not intended or written to be used for the purpose of avoiding tax penalties under applicable law.