Follow-up article to “No More Paper Checks” Article

Clarifying Tax Payment Options: NC and IRS Updates

We have received several questions following our recent article about the elimination of paper checks for federal tax payments. This follow-up will help clarify what is changing—and what is not—at both the federal and state levels.

North Carolina DOR (State Taxes)

Paper Checks: Still accepted. The NC Department of Revenue has not announced plans to discontinue paper checks.

Electronic Payment Options:

  • eServices Bank Draft (No Fee): Pay directly from your checking or savings account through the NCDOR eServices portal.
  • Credit/Debit Cards (Fee Applies): A $2 fee per $100 paid applies. Visa and MasterCard accepted.
  • Mail-In Checks: Still an option. Make checks payable to “NC Department of Revenue” and include any required vouchers.

For a full breakdown of payment options and fees for NC state taxes, including which tax types can be paid online and by mail, please see the NCDOR Payment Methods page.
https://www.ncdor.gov/file-pay/payment-methods

IRS (Federal Taxes)

Beginning September 30, 2025, the IRS will no longer issue or accept most paper checks. Federal taxpayers (both individuals and businesses) will need to use one of the following electronic payment methods. Please note: you cannot pay the IRS using your bank’s Bill Pay system.

1. IRS Direct Pay – Individual Taxpayers and most businesses (No Fee)

  • Pay from a bank account at no cost.
  • Can be used for balance due, estimated taxes, amended returns, and more.
  • Available here: IRS Direct Pay

2. EFTPS – For Some Businesses and Enrolled Users (No Fee)

  • The Electronic Federal Tax Payment System (EFTPS) is required for certain business payments, including C Corporations.
  • If you are not enrolled, we recommend using IRS Direct Pay unless otherwise required.
  • If you are not enrolled, we recommend using IRS Direct Pay unless otherwise required.
  • Learn more: EFTPS.gov

3. Credit/Debit Card Payments (Fee Applies)

  • Accepted via IRS-authorized third-party processors.
  • Fees vary, generally ranging from 1.75% up to 2.95% of the payment amount for credit cards, or a flat fee of $2.10–$2.15 for debit cards.
  • More info: IRS Card Payments

Which Method Should You Use?

 Payment Method For Fee Notes
Federal IRS Direct Pay Individuals & Most Businesses No Easiest and most recommended
Federal EFTPS Businesses (some required) No Use only if required or already currently enrolled
Federal IRS Card Payment Both Yes Credit card fees apply
State (NC) NC Bank Draft Individuals & Businesses No Through NC eServices
State (NC) NC Card Payment Both Yes $2 per $100 paid
State (NC) Paper Check NC Only No Still accepted by NC DOR

Setting Up an IRS Online Account

While not required for making payments, creating an IRS Online Account is a helpful tool for individuals to manage their tax information more efficiently.

Benefits of an IRS Online Account:

  • View your balance, payment history, and tax transcripts
  • Set up and manage payment plans
  • Access notices and documents from the IRS
  • Update your mailing address and contact information
  • Authorize tax professionals and manage power of attorney forms

How to Set Up Your IRS Online Account:

  1. Go to: https://www.irs.gov/payments/your-online-account
  2. Click “Sign in with ID.me.”
  3. Select “Create a new account” if you are a new user.
  4. Follow the prompts to verify your identity using ID.me (you will need a photo ID and may need to take a selfie).
  5. Once verified, you will create a username and password to access your account securely.

Tip: For the smoothest experience, have your driver’s license or passport, a recent tax return, and your mobile phone available during setup.

Once your account is created, you will have 24/7 access to manage your federal tax profile with greater convenience and transparency.

Whether you are paying state or federal taxes, understanding your options—and having the right tools—can make the process easier and more secure. Setting up an IRS Online Account is a great way to stay informed and manage your tax obligations efficiently.

If you have questions about which payment method is right for you or need help navigating the setup process, our team is here to assist you every step of the way.