U.S. Treasury to phase out paper check payments starting Sept. 30, 2025

Executive summary

On Sept. 23, 2025, the IRS issued a news release announcing additional information about its plan to move to electronic-only payments. 

In a news release issued on Sept. 23, 2025, the IRS announced it will phase out paper tax refund checks for individual taxpayers beginning on Sept. 30, 2025, to comply with Executive Order 14247. The IRS stated it will publish more detailed guidance for 2025 tax returns before the 2026 filing season begins. Until further notice, taxpayers should continue using existing forms and procedures.

Most refunds will be delivered by direct deposit or other secure electronic methods. The IRS will offer prepaid debit cards, digital wallets and limited exceptions where appropriate. For payments to the IRS, taxpayers should continue to use existing payment options until further notice.

During the Sept. 24, 2025 Financial Literacy and Education Commission (FLEC) public meeting, an IRS panelist stated that the IRS would not be implementing changes for the Oct. 15, 2024, extension filing deadline and instead would wait until the 2025 filing season beginning in 2026.

Understanding the executive order's impact

The executive order mandates that all federal disbursements and payments to the government transition to electronic methods by Sept. 30, 2025. This includes tax refunds, benefit payments, vendor payments and tax payments to the IRS. While the order provides for certain exceptions, including individuals without banking access and emergency situations, the scope is comprehensive.

The federal government cites increasing fraud and mail theft as primary drivers for this change. Paper checks are 16 times more likely to be reported lost, stolen or altered compared to electronic transfers. Check fraud reports nearly doubled between 2021 and 2022, with mail theft complaints rising substantially since 2020.

Current IRS electronic payment options

Taxpayers currently have several electronic payment methods available. IRS Direct Pay allows individuals to pay directly from checking or savings accounts without fees. The Electronic Federal Tax Payment System (EFTPS) serves businesses and requires enrollment. Same-day wire transfers are available for time-sensitive payments, though fees apply. Credit and debit card payments are accepted through authorized processors, with convenience fees charged by the processors, not the IRS.

Current IRS electronic payment methods include:

• Direct Pay with bank account (for individuals)
• Debit card, credit card or digital wallet
• Pay from an IRS account: Individual Online Account or Business Tax Account
• EFTPS for businesses
• Same-Day Wire (fees apply)
• Electronic Funds Withdrawal (e-filing only)

Under current law, tax payments are considered received when the IRS actually receives the funds, not when taxpayers initiate the transfer. This distinction is crucial for avoiding late-payment penalties. Taxpayers must allow sufficient processing time to ensure payments reach the IRS by the applicable deadlines.

Taxpayers should file returns electronically where feasible and request direct deposit to minimize fraud risk.

It is important to note that new enrollment in EFTPS for individuals will phase out on Oct. 17, 2025. Individuals are directed to create an IRS Online Account for Individuals or use the IRS Direct Pay guest path.