September 1, 2025

What Everyone Needs to Know: IRS Paper Checks Eliminated by September 30, 2025

What Everyone Needs to Know: IRS Paper Checks Eliminate

What’s Changing — and Why It Matters

Starting September 30, 2025, the U.S. Department of the Treasury—alongside the IRS —will cease issuing paper checks for federal tax refunds.  The acceptance of is still not completely clear but states “as soon as practicable, the Treasury will stop accepting paper checks for federal tax payments.

Why the shift?

  • In fiscal year 2024, maintaining paper-based payment systems cost taxpayers over $657 million.
  • Paper checks are 16 times more likely to be lost, stolen, altered, or returned undeliverable compared to electronic payments, making the digital switch a security imperative.

What Taxpayers Should Know & Do

1. Refunds – All Digital Now

Tax refunds will be issued only via electronic methods, such as direct deposit, prepaid debit cards, or digital wallets.

If you still receive payments via paper check, enrollment in direct deposit or an approved alternative is essential, accessible via:

  • The benefit-paying agency
  • GoDirect.gov
  • The Treasury’s Electronic Payment Solution Center at 1‑800‑967‑6857

2. Paying the IRS – No More Paper Checks

Tax payments (e.g., owed balances, estimated taxes) must be made electronically in the near future but no final date has been set yet.  However, this change is coming so preparing for it now will ensure you are ready.  Options include:

  • IRS Direct Pay
  • EFTPS (Electronic Federal Tax Payment System)
  • Debit/credit cards via IRS-approved processors
  • Digital wallet options or IRS2Go app

3. Exceptions Are Limited

Some exceptions remain, primarily for Individuals without bank or electronic access (“unbanked”).

What Do I Need to do Immediately

1.      If you have filed your 2024 tax return but have a 4th quarter estimated tax payment that is still due, you may want to setup an IRS Online Account to make that payment or one of the other options listed on how to pay the IRS electronically (see above).  You could also consider checking with your tax professional to see if a final date has been set.

2.      If you have not filed your 2024 tax return, you will need to provide your tax professional with your banking information (bank name, bank routing number, bank account number and bank account type). 

Why You Should Act Now

  • Avoid delays or missed payments.
  • Ensure refunds reach you safely and quickly.
  • Comply with new federal policy and avoid potential complications as the deadline nears.

How to Get Prepared

  1. For tax payments, register for an IRS Online Account and set up digital payment methods like Direct Pay or EFTPS.
  2. Ensure your tax professional has all of your correct bank account information on file when you turn in your tax documents. 
  3. Talk to your tax professional to discuss the options that are best for you.

Final Thoughts

The elimination of paper checks for federal payments is a landmark shift—aimed at reducing fraud, cutting costs, and improving how Americans receive and pay government funds. But with the transition deadline of September 30, 2025, it's crucial to take steps now to adapt smoothly.

In our opinion, all taxpayers should consider setting up the IRS Online Account.  This account can be used to view payment history, track refunds, access key documents, make payments, verify tax returns, get Identity Protection PINs, etc.

Not sure what’s right for your situation? Planning ahead and talking to your tax professional is key to avoiding disruptions.