Electronic Payments

A significant change is coming to how you interact with the IRS, and we want to make sure you’re prepared. Effective September 30, 2025, the IRS will no longer issue or accept paper checks. This means all tax payments and refunds will need to be handled electronically.  

This administration believes that this change will increase efficiency and accuracy while streamlining processing. Similarly, the IRS is hopeful to create a more secure and streamlined payment process.

The Benefits of Going Electronic

The shift to an all-electronic system is not just about modernization; it’s about making the tax system better for both the IRS and taxpayers. The key benefits include:

• Faster Payments and Refunds: No more waiting for a check to arrive in the mail. Electronic payments and direct deposits are processed much faster.
• Increased Security and Fraud Reduction: Paper checks can be lost, stolen, or altered, leading to significant security risks. Whereas electronic transfers are a more secure method, reducing the risk of identity theft and fraud. According to the Treasury Department, paper checks are 16 times more likely to be reported lost or stolen than electronic transfers.
• Reducing Administrative Costs: The administrative costs associated with printing, mailing, and processing millions of paper checks each year are substantial. The IRS’s shift to electronic payments will help reduce these costs.
• Improved Efficiency: Electronic payments and refunds eliminate the delays and errors that can occur with manual processing. The IRS can handle transactions more efficiently, leading to a smoother experience for everyone.

What This Means for You: Getting Ready for the Change

The transition to electronic payments requires a few simple steps from you to ensure a smooth tax season.

To Receive Your Tax Refund:

If you are due a refund, you will no longer have the option to receive a paper check in the mail. Instead, you’ll need to provide your bank account details for direct deposit. When we prepare your tax return, we will ask for the following information to set up direct deposit:

• Your bank’s routing number: This is a nine-digit number that identifies your bank.
• Your bank account number: This is the specific number for your checking or savings account.

To Make a Tax Payment:

If you have a tax liability, you will no longer be able to mail in a paper check. Payments will need to be made electronically. The IRS offers several secure and convenient ways to do this:

• IRS Direct Pay: This is a free service that allows you to make secure tax payments directly from your checking or savings account.
• Electronic Federal Tax Payment System (EFTPS): This free service is primarily used by businesses but is also available for individual taxpayers to schedule and make payments.
• Debit Card, Credit Card, or Digital Wallet: You can also pay your taxes through an IRS-approved third-party payment processor, though some may charge a fee.
• Through Your Tax Return: You can still provide your banking information on your filed tax return to direct the IRS to withdraw underpayments from your bank account.

Most of our clients have already made the switch to electronic payments so this initiative will have minimal to no impact for them. However, if you have historically mailed in your payments and received refunds through the mail, we understand that change can be a little daunting. But this new system is designed to provide a faster, more secure, and more efficient way to manage your taxes. As always, we are here to help you navigate this transition. Please contact us with any questions or concerns you may have about making or receiving electronic payments.