Tax season is getting a serious tech upgrade. Thanks to a new executive order, the IRS is phasing out paper checks — both for refunds and payments, in favor of fully electronic transactions. Here’s a breakdown of what’s changing, why it matters, and how you can prepare.
What’s Changing: The Shift to Electronic Payments
- Starting September 30, 2025, paper checks will largely be phased out:
- The IRS will stop issuing paper checks for tax refunds.
- The IRS will no longer accept paper checks for tax payments.
- The move applies broadly and affects all types of taxpayers.
Ways to make your payments:
Under the new protocols, taxpayers can use a variety of electronic payment options, including:
- IRS Direct Pay – Allows individual taxpayers to pay directly from their checking or savings account, with zero fees.
- EFTPS (Electronic Federal Tax Payment System) – This method can be used by businesses, trusts, and estates.
Are There Exceptions?
Yes, not everyone will be cut off from paper checks. According to guidance:
- Individuals who lack access to traditional banking services may qualify for a waiver. While there is not a lot of knowledge yet on the waivers, the IRS is expected to issue more detailed guidance on how waivers will work.
What You Need to Do — Action Steps for Taxpayers
- Verify Your Information. Make sure your tax forms or payment portals include your correct routing and account numbers. This will be needed for direct deposit or withdrawals. You will also need to verify the address on your return matches the address you associate with your payments. Failure to do so can result in the payment not being associated with your tax return.
- Enroll in Electronic Payment Tools:
- Individuals: Consider using IRS Direct Pay or the IRS2Go app.
- Businesses, trusts, estates: Register for EFTPS in advance. It can take a few weeks to get your pin in the mail to finish setting up your account.
- Open an IRS Online Account. This will give you visibility into your payments, balances, and history.
Bottom Line: Why This Is a Big Deal
If you do not make your payments electronically for your estimates due after 9/30/2025, your payment may not be accepted. Failure to pay these payments can result in additional penalties and interest on your return.
