The IRS is going digital, and with a little prep now, you’ll be set up for a faster, smoother tax experience.
On March 25, 2025, President Trump signed Executive Order 14247: Modernizing Payments to and from America’s Bank Account. The mission: streamline how tax dollars move—cutting costs, reducing fraud, and eliminating paper checks for nearly all IRS transactions.
What’s Ending?
Starting September 30, 2025, the IRS will no longer accept or issue paper checks for:
- Tax payments (balances due)
- Estimated payments
- Business tax payments
- IRS refunds
Why This Matters
The U.S. Treasury reports that in FY2024 alone:
- Paper checks cost over $657 million to process!
- They’re slower, easier to lose, and more vulnerable to fraud
Digital payments, by contrast, are faster, safer, and easier to track—and that’s where the IRS is headed.
Key Dates to Know
- March 25, 2025 – Executive Order signed
- June 23, 2025 – Agencies submitted implementation plans
- Sept 21, 2025 – Treasury reports on national rollout
- Sept 30, 2025 – Paper check phase-out begins
- Oct 15, 2025 – Goal: All taxpayers set up for digital payments
Who’s Affected?
Everyone who pays or receives money from the IRS, including:
- Individuals (Form 1040)
- Trusts and estates (Form 1041)
- Partnerships and Corporations (Forms 1065, 1120, 1120S)
- Anyone making estimated payments or expecting refunds
How to Pay Electronically
For Individuals:
- Direct Pay – Easy, no login required
- IRS Online Account – See your balance, make payments
- Credit/Debit Card – Via IRS-approved processors
- Bank Account Debit – Linked when you e-file
For Businesses:
- EFTPS – Required for most entities; lets you schedule and track payments
- ACH/Wire Transfers – For high-dollar payments (where applicable)
What You Should Do Now
- Set up or log in to your IRS Online Account
- Enroll in EFTPS (especially for business owners – you may already be enrolled if you have payroll)
- Confirm your bank routing and account numbers for smooth refunds and payments
Final Word
This is a meaningful step toward a faster, safer, and more modern tax system. By making the switch now, you’ll avoid last-minute stress and be set up for smooth, secure payments and refunds moving forward.