The IRS Is Ditching Paper Checks. Here’s What That Means for You.
If you’ve ever had to send a certified check to the IRS and crossed your fingers that it would arrive on time (and not disappear into the void), you’re not alone. The paper-based way of handling payments to and from the government has always been a little clunky, and now it’s finally being phased out.
Starting September 30, 2025, the federal government will stop issuing and accepting paper checks for nearly all payments. That includes tax refunds, estimated tax payments, balances due, Social Security benefits, and vendor payments.
This change is happening across the board. While it’s meant to make payments faster and more secure, we understand it can feel like a disruption, especially if you’ve been doing things the same way for years.
Let’s walk through what’s changing and what you actually need to do to stay ahead of it.
Who This Affects
In short, almost everyone. If you fall into one of these categories, it’s time to take action:
Individuals who receive refunds or government benefits by mail, or who pay the IRS by check
Business owners who still write checks for quarterly payments, payroll taxes, or other obligations
Trustees or executors making payments for trusts or estates, or expecting refunds by mail
After September 30, checks will no longer be processed, and new ones will not be issued.
What You Need to Do
For Individuals
If you’re used to getting a refund check or mailing one in for a tax payment, here’s what to do:
Set up direct deposit:
When you file your tax return, be sure to include your routing and account number. That way, your refund goes straight to your bank account avoiding delays and wondering if the check got lost in the mail.
Use IRS Direct Pay:
This is a quick, secure way to pay the IRS straight from your bank account. It’s great for one-time payments like estimates or a balance due, and you don’t need to create a login or account to use it.
Want to use a card instead?
You can use a debit or credit card to make tax payments, though there are processing fees. Some clients choose this route to earn credit card points or hit a spending threshold for a welcome bonus, just make sure the rewards outweigh the fee. A free flight sounds nice, but not if it costs more than the ticket.
For Businesses
If your business is still mailing checks for federal tax payments, now’s the time to switch to a secure electronic method. There are two primary options:
IRS Direct Pay:
This works well for quick, one-time payments like a balance due, estimated taxes, or amended return payments. You don’t need to create an account, and it pulls funds directly from your bank.
Just keep in mind, there’s a limit of five payments per day, and each must be under $10 million.
EFTPS (Electronic Federal Tax Payment System):
If your business makes recurring payments (like payroll taxes) or needs more flexibility, EFTPS is the better choice. It’s a free system run by the Treasury that can handle just about any federal business tax payment.
Heads-up: EFTPS requires enrollment, and the IRS mails a PIN to your business address. It’s not instant, so give yourself a couple of weeks to get set up.
Also, double-check that the bank account on file with the IRS is current, especially if your business is due a refund or credit.
For Trusts and Estates
If you're handling tax payments for a trust or estate, there's no getting around it, paper checks are out, and you’ll need to be ready for electronic-only payments and refunds. Here’s what to do:
Make sure you have a bank or brokerage account ready:
If there isn’t already a bank or brokerage account set up, you’ll need one that can send and receive ACH transfers. This is what the IRS will rely on moving forward, both to collect taxes and to issue any refunds. Mailing checks will no longer be an option.
Enroll in EFTPS:
This is the IRS’s official system for electronic payments. It’s free, secure, and flexible enough to handle most trust and estate payment needs. Just know that the setup takes a little time. The IRS will mail a PIN to the trust or estate’s address on file before you can activate the account, so don’t leave it until the last minute.
Know your backup options:
In some cases, you may be able to authorize an electronic withdrawal when filing the return. That can work if you’re e-filing, but it’s not a replacement for EFTPS. Direct Pay, the tool many individuals use, isn’t available for trust or estate filings.
Planning for a refund?
The expectation going forward is that refunds will be issued electronically. To make that happen, the account must be able to accept ACH deposits and match the entity name and EIN. If not, the refund may default to a paper check — or worse, bounce back. Until the IRS gives clearer direction, it’s best to be prepared for either outcome.
Why This Is Happening
In case you're curious: the IRS and Treasury are doing this to cut down on fraud, lost mail, and delays. Paper checks are 16 times more likely to go missing than an electronic payment, and maintaining the old system cost over $650 million last year alone.
So this shift is about modernization, security, and getting money where it needs to go without standing in line at the post office clutching a certified mail receipt.
Need Help?
We’re already helping clients get ready for this change, and we’re happy to support you too. If you’re unsure which system to use, need help getting started with EFTPS or Direct Pay, or want us to take a look at your current process, let’s talk.
Reach out to us today and we’ll help you make a smooth transition.
