IRS to Discontinue Paper Checks

Sue Schloemer

Jun 11, 2025

Earlier this year, President Trump signed an Executive Order directing federal agencies to adopt electronic payment methods for all transactions with the Department of the Treasury. As a result, the IRS will stop issuing paper checks for tax refunds beginning September 30, 2025.

This move is part of a broader federal initiative to modernize payment systems, improve efficiency, and reduce fraud. In addition to refund payments, the Executive Order also mandates that tax payments to the federal government be made electronically, although the specific date for this transition remains unclear. The directive states that electronic payment processing should occur “as soon as practicable, and to the extent permitted by law,” unless a legal or practical exception applies.

 

What This Means for You

Individual and business taxpayers should begin preparing for a fully digital payment and refund process. The following electronic tax payment methods are currently available:

  • EFTPS (Electronic Federal Tax Payment System): Ideal for businesses and individuals to schedule payments in advance.
  • IRS Direct Pay: For direct payments from a checking or savings account.
  • Same-Day Wire Transfers: For urgent or large payments through a financial institution.

While limited exceptions will remain in place, the expectation is that most transactions will be electronic by late 2025.

 

Next Steps

Kirsch CPA Group recommends reviewing your current payment and refund procedures to ensure readiness for this transition. If you or your business rely on paper checks, now is the time to set up online payment options and familiarize yourself with electronic systems like EFTPS and Direct Pay.

Please contact our office if you need assistance enrolling in electronic payment systems or have questions about how these changes may impact your filing and refund process.

 

Schedule an appointment to learn how we can support you

 

© Copyright 2025. All rights reserved.

 

About The Author

Sue enjoys helping clients succeed. Her breadth and depth of accounting knowledge combined with over 25 years of…

Read More


Sign Up for Email Updates


Accounting & Financial News

IRS to Discontinue Paper Checks

Earlier this year, President Trump signed an Executive Order directing federal agencies to adopt electronic payment methods for all transactions…

Avoiding Tax Trouble with Owner Compensation in Manufacturing

Smaller manufacturing companies often operate as S corporations. In many cases, one of the shareholders (or perhaps…

Activity-Based Costing May Benefit Some Contractors

In an uncertain economy, accurate and actionable job cost accounting is more important than ever. If you haven't already, consider…