The IRS is about to make a historic shift in how Americans handle their taxes—and the deadline is just weeks away. Under President Trump’s Executive Order 14247 (Modernizing Payments To and From America’s Bank Account), nearly all federal tax payments and refunds must be made electronically after September 30, 2025, eliminating both paper check payments and mailed refund checks.
For taxpayers who still rely on paper, this shift will bring big changes. Anyone who mails checks with returns, pays quarterly estimates by check, or receives refund checks will need to switch to avoid delays, penalties, and missed refunds. The IRS offers three primary electronic options for taxpayers: IRS Direct Pay, Electronic Federal Tax Payment System (EFTPS), or through an IRS Online Account. Additional options may be available depending on individual circumstances.
Taxpayers in certain circumstances will face additional rules as paper checks are phased out. In California and other disaster relief regions, estimated payments postponed until October 2025 must be made electronically if due after September 30. Trustees of irrevocable trusts are also restricted to using EFTPS, making early enrollment essential to avoid penalties.
If you are expecting a refund, be sure to include your bank account information with your tax return to receive it by direct deposit—otherwise, you could experience delays.
This move is part of a broader effort to modernize how the federal government handles payments. Beginning September 30, 2025, all federal disbursements, including Social Security, Veterans benefits, and vendor payments, will also shift to electronic delivery. Anyone still receiving paper checks for federal benefits will need to set up direct deposit or enroll in the Direct Express® Debit Mastercard® to avoid interruptions.
Taxpayers affected by this change should set up the electronic payment option of their choice immediately to ensure uninterrupted access to refunds and federal benefits. With the deadline only weeks away, acting now is the only way to stay compliant and avoid last-minute problems. Contact your Stephano Slack tax manager or partner at 610-687-1600 or TaxInfo@StephanoSlack.com to learn more.
Author Coleman Clark is a Tax Senior specializing in strategies for high-net-worth individuals and driving business growth. He focuses on providing personalized solutions to help clients achieve their financial goals. He can be contacted at 610-687-1600 or cclark@stephanoslack.com.
Disclaimer: This content is for informational purposes only and doesn’t constitute professional advice.
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