The U.S. government is making a major change in how it sends and receives payments. Beginning September 30, 2025, most federal payments—including tax refunds—will no longer be issued by paper check. Similarly, the government will stop accepting paper checks for most payments made to federal agencies, including tax payments.
What This Means for You
If you receive any type of federal payment—such as a tax refund, Social Security benefit, or government contract payment—you will need to use the electronic payment options moving forward. Likewise, if you send payments to the government, you will need to do so electronically.
Accepted Electronic Payment Methods Include:
- Direct deposit to a bank account
- Prepaid debit cards
- Credit or debit card payments
- Electronic funds transfers via IRS Direct Pay or EFTPS (Electronic Federal Tax Payment System)
- Digital wallet options, where available
Limited Exceptions May Apply
Some limited exceptions will be allowed, such as individuals without access to electronic banking or in special circumstances approved by the Secretary of Treasury. However, these will be rare, and most taxpayers and payees should prepare to make the switch.
What You Should Do Now
- Check your banking details: Make sure your direct deposit information is current with the IRS and other federal agencies.
- Set up electronic payment methods: If you pay estimated taxes or other federal fees, consider enrolling in EFTPS or using IRS Direct Pay.
- Plan ahead: If you have relied on paper checks in the past, this is the time to make the necessary changes to avoid delays.
Moving toward a fully electronic system is a significant change, but with a little preparation, it can make tax season and other financial transactions with the government smoother and faster.
Sources: Current Federal Tax Developments, Forbes, Entrepreneur
Please note that credit and debit card payments are processed through third-party providers and may include a convenience fee on the IRS website.
You can find more information, including current fee details and payment options, on the IRS website:
•Credit/Debit Card Payment Information and Fees: https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card
•Direct Pay (Free from a Bank Account): https://www.irs.gov/payments/direct-pay