IRS Mandates an End to Payments by Check Starting September 30, 2025
In a significant move towards modernizing the tax payment system, the Internal Revenue Service (IRS) is phasing out paper check payments for federal taxes.
In a significant move towards modernizing the tax payment system, the Internal Revenue Service (IRS) is phasing out paper check payments for federal taxes. This change comes following an executive order signed in March 2025, mandating that all federal tax payments and refunds be conducted via electronic funds transfer (EFT) starting September 30, 2025.
What This Means for Taxpayers
This shift will affect various types of tax payments, including IRS estimated tax payments (Form 1040-V). Here's what you need to know:
Impact on Estimated Tax Payments
Third-quarter 2025 payment (due September 15, 2025): This payment will not be affected by the new rule. You can still mail a check with your voucher for this quarter.
Fourth-quarter 2025 payment and beyond: All payments for quarters due after September 30, 2025, must be made electronically.
Preparing for the Change: Electronic Payment Options
To help taxpayers transition smoothly, the IRS recommends familiarizing yourself with the following electronic payment methods:
Secure payments directly from your bank account
No registration required
Schedule payments up to 365 days in advance
Sign in to pay taxes
View your payment history
Electronic Federal Tax Payment System (EFTPS):
Free service for individuals and businesses
Pay all types of federal taxes
What Should You Do to Prepare for Making Estimated Tax Payments Electronically?
This change represents a significant shift in how we interact with the IRS. While it may require some adjustment, electronic payments offer several benefits, including increased security, faster processing times, and a reduced environmental impact. This change may be significantly impactful to seniors who may be less technology savvy.
We recommend starting to use these electronic methods now, even before the mandate takes effect. This will help you become comfortable with the process and ensure you're ready when paper checks are no longer accepted.
Stay tuned for more updates from the IRS as we approach the September 30, 2025 deadline. If you have any questions about this change or need assistance setting up electronic payments, don't hesitate to reach out to a tax professional.
Frequently Asked Questions About IRS Electronic Payments
Q. What are the main electronic payment options available for paying taxes? A: The IRS offers several electronic payment options, including:
Direct Pay (for individual taxpayers)
Electronic Federal Tax Payment System (EFTPS)
Credit or debit card payments
Electronic Funds Withdrawal (during e-filing)
IRS2Go mobile app
