Tax Payments Are Going Paperless: Steps to Get Ahead of the Change

Starting September 30, 2025, paper checks will no longer be accepted for federal tax payments, nor will they be issued for refunds. This is part of a broader government push to modernize the tax system, improve efficiency, and reduce fraud.

For individuals and families, this means that the familiar process of mailing in a check with a tax return or waiting for a paper refund check to arrive in the mail will no longer be an option. While the change may feel disruptive, it also presents an opportunity to streamline how you manage your tax payments and avoid common risks tied to traditional methods. Here's what you need to know:

• All payments and refunds must be electronic after September 30, 2025. This includes estimated tax payments, balances due, and refunds. If you’ve been relying on checks, you’ll need to set up an electronic option before the deadline.
• There are multiple secure methods already available. Taxpayers can use IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), debit or credit card payments, digital wallets, or direct deposit for refunds. Each method has its own setup process, so planning ahead is key.
• The change is designed to protect you. Paper checks are vulnerable to fraud, theft, and delays. Electronic payments are faster, safer, and provide immediate confirmation that funds have been received or sent.
• Processing efficiency is another major factor. The Treasury estimates that moving away from paper checks will save hundreds of millions in costs over the next decade, while also reducing errors caused by manual handling.
• Exceptions will be rare. While the Treasury Secretary may grant waivers for individuals without access to electronic banking (such as the unbanked or those in remote areas), most taxpayers should assume they will need to adopt electronic methods.
• Practical next steps are worth considering now. If you’re not already set up with EFTPS or Direct Pay, it makes sense to establish an account this year, test the process, and get comfortable before the deadline. Similarly, make sure your bank account information with the IRS is accurate and up to date for direct deposits.

NOTICE: Any tax assessment made by the IRS will be sent by mail. The IRS will not email or text you informing you that you owe tax. Do NOT click on any email or text purporting to be from the IRS!

While this may be inconvenient for those accustomed to writing checks, the benefits of security, speed, and reliability make electronic payments the clear path forward. By preparing now, you’ll avoid headaches next year and ensure a smoother tax filing experience when the change goes live.

Whenever you're ready, we’re here to help:

Managing your own finances can be overwhelming. If you’d like to experience the benefits of working with a trusted advisor we invite you to schedule a no-obligation phone call to explore how working with Ark Royal might enhance your wealth and peace of mind.

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