We are reaching out to share an important update regarding significant changes to IRS payment and refund processes. On March 25, 2025, President Trump signed an executive order aimed at modernizing payments to and from the federal government. The goal is to eliminate inefficiencies, reduce costs, and improve payment security by requiring nearly all financial transactions with the IRS to be made via electronic funds transfer (EFT).
The American Institute of Certified Public Accountants (AICPA) has been actively advocating for taxpayers by working to delay or secure modifications to this mandate. We were hopeful that their efforts would result in a delay or changes to the requirements; however, this past Thursday, the AICPA indicated that their advocacy efforts have not been successful, and the new mandate will proceed as planned.
What’s Changing?
In essence, the IRS will no longer accept or issue paper checks effective September 30, 2025. All payments to and from the IRS including tax refunds, tax payments, fines, fees, and loans must be completed by electronic means.
Accepted Electronic Methods:
- Direct deposits
- Debit and credit card payments
- Digital wallets
- Real-time payment systems
- Other modern electronic payment options
- Treasury approved alternatives (such as prepaid debit cards) will also be made available
Exceptions
Alternative payment options will be provided only for those who meet the exceptions, which include:
- Individuals who do not have access to banking services or electronic payment systems
- Certain emergency payments where electronic disbursement would cause undue hardship
- National security or law enforcement-related activities requiring non-electronic transactions
- Other special cases as defined by law
How to Make Electronic Payments:
The IRS currently offers several electronic payment options, including:
- Direct Pay: Pay directly from your bank account
- IRS2Go Mobile App
- IRS Online Account: View balances and make payments
- Debit or Credit Card and Digital Wallet: Through IRS-approved processors (fees may apply)
- ACH transfers or wire transfers: For high-dollar transactions
For more information about payment options and details, please visit: https://www.irs.gov/payments.