IRS Stops Paper Checks

In March 2025, the federal government signed an Executive Order directing agencies, including the IRS, to transition away from paper check payments in favor of electronic payment methods by September 30, 2025. 

At this time, however, the IRS has not issued formal guidance on how this directive will be implemented. With the effective date coming up soon, there is still significant uncertainty. While this change may move forward as planned, there are several factors that could delay or alter the rollout. 

Key Points to Know: 

• What’s Changing: The IRS may stop issuing and receiving paper checks, shifting fully to electronic payment methods such as direct deposit, EFTPS (Electronic Federal Tax Payment System), and online payments using cards or digital wallets. 

• Why It Matters: If you currently pay taxes or receive refunds by paper check, you may need to make adjustments to ensure compliance and avoid delays. 

• Uncertainty Remains: Although the Executive Order set a September 30 deadline, the IRS has not yet provided specific procedures, exceptions, or a formal transition plan. 

Electronic Payment and Refund Options To prepare for this potential transition, here are the primary IRS-approved electronic methods currently available: 

• IRS Direct Pay (1040 and Business Return Payments ONLY): Make payments directly from your checking or savings account without fees. → Access here: IRS Direct Pay 

• EFTPS – Electronic Federal Tax Payment System (All Payments): A free service from the U.S. Treasury for making estimated, business, and other tax payments. Enrollment is required, and the setup process takes about a week. → Enroll here: EFTPS Enrollment

No immediate action is required at this stage. We are closely monitoring developments and will provide timely updates as soon as the IRS issues official guidance.

In the meantime, we encourage clients to: 

1. Review your current payment and refund methods. 

2. If you rely on paper checks, consider setting up one of the electronic options above now to avoid last-minute challenges. 

3. Reach out to us if you have questions about which option may be best for your situation. 

We understand that uncertainty around this potential change may be concerning, and our team is committed to keeping you informed. As soon as the IRS provides additional direction, we will communicate what it means for you and outline any steps you may need to take.