Paper Checks Scheduled to Cease on September 30, 2025

On March 25, 2025, President Trump signed an Executive Order requiring the U.S. Treasury to phase out paper checks for nearly all federal payments and collections by September 30, 2025. This means that after that date, the IRS and other agencies will presumably no longer issue tax refunds, Social Security benefits, vendor payments, or intragovernmental transfers by paper check, nor will they accept paper checks for payments such as taxes, fines, or fees. The goal is to modernize the system by making transactions faster, reducing fraud risk, and lowering administrative costs. Limited exceptions will be available for individuals without banking access, in emergencies, or in other special circumstances.  More information is needed from the IRS on the details of how and exactly when this will be implemented for taxpayers, and we will continue to provide updates as they become available.

What does this mean for you?  

For most taxpayers, this shift will require some simple but important adjustments. If you usually receive your tax refund by check, you’ll need to switch to direct deposit or another electronic payment method. Likewise, if you typically mail paper checks to the IRS, you’ll need to pay electronically through IRS.gov or other approved methods. The Electronic Federal Tax Payment System (EFTPS) announced that individuals will no longer be able to create new enrollments after October 17, 2025. Existing individual users can still make payments through EFTPS, but all new users must use their IRS Online Account or IRS Direct Pay. Businesses are not affected by this cutoff, but individual taxpayers must transition fully by 2026.  While exceptions may apply for those without banking access, in emergencies, or in other Treasury-approved situations, the move away from paper appears to be permanent, and the safest step is to prepare now. Reviewing your payment and refund setup ahead of the deadline will help ensure a smooth transition.

Have a question?

If you have any questions or if you would like to speak with your BMSS professional, please call our office at (833) CPA-BMSS or visit our website for location contact information.