Federal Shift to Electronic Payments: What Taxpayers Need to Know

Earlier this year, an Executive Order signed on March 25, 2025, set a clear direction for the future of federal payments. Paper checks are on their way out, and by September 30, 2025, most federal disbursements, including tax refunds, will transition to electronic-only methods. Likewise, payments made to the Treasury, including tax payments, should be processed electronically whenever permitted by law.

While details on the implementation of this Executive Order are still emerging, this change signals a shift in how taxpayers will interact with the federal government. Paying tax balances by check or receiving tax refunds via paper checks may soon become exceptions rather than the norm.

What Electronic Payments Mean for You

• Continue watching for official guidance. The IRS and Treasury will publish more details before the next filing season.

• Update your banking information. Ensure your bank account information is accurate and securely shared with your tax advisor or the IRS.

• Explore electronic payment options. Familiarize yourself with IRS Direct Pay, EFTPS, debit/credit options, and other digital payment tools to streamline the process once the deadline approaches.

Planning ahead is critical. Transitioning to electronic payments can help you avoid delays, reduce risk, and ensure a smoother financial experience.

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