Important IRS Update: Transition to Electronic-Only Payments & Refunds

10 Jun 2025 Important IRS Update: Transition to Electronic-Only Payments & Refunds

Following an Executive Order signed on March 25, 2025, the federal government is transitioning to electronic-only transactions for all payments to and from federal agencies, including the IRS. This change is designed to streamline operations, reduce fraud, and improve efficiency—but it also requires proactive planning.

What’s Changing?

Effective September 30, 2025, the U.S. Treasury will:

• Stop issuing paper checks for all federal disbursements, including tax refunds, Social Security benefits, and vendor payments.
• Stop accepting paper checks for any federal payments, including taxes owed.

How to Prepare:

To avoid delays, errors, or penalties, we recommend the following steps:

• Set Up Direct Deposit
  • Individuals should enroll in direct deposit for tax refunds and benefits.
  • Businesses can set up direct deposit using Form 8050
• Use Secure Electronic Payment Tools
  • Individuals: IRS Direct Pay
  • Businesses and Individuals: EFTPS(Electronic Federal Tax Payment System)
• Stop Mailing Checks
  • Begin transitioning now. After September 30, 2025, mailed tax payments will no longer be accepted.
• Verify Banking Information
  • Ensure your account and routing numbers are accurate on all IRS forms and payment platforms.

Exceptions:

Limited exceptions will apply for:

• Individuals without access to banking services
• Emergency or hardship cases
• National security or law enforcement purposes
• Other exceptions as authorized by the Secretary of the Treasury

We will continue to communicate this change over the coming months to help ensure a smooth transition. If you have questions or need assistance preparing, please don’t hesitate to reach out to your Haynie advisor.