URGENT: Major IRS Payment Changes Take Effect September 30, 2025

Starting September 30, 2025, the IRS will no longer accept paper checks for tax payments or issue paper refund checks. This sweeping change, mandated by Executive Order 14247, affects every taxpayer who currently uses paper-based payment methods.

What's Changing

The Treasury Department's modernization initiative eliminates paper check processing for most tax transactions. After September 30, 2025, taxpayers must use electronic payment methods for all tax payments, and refunds will only be issued via direct deposit or prepaid debit cards.

Electronic Payment Options

IRS Direct Pay: Free bank transfer directly from your checking or savings account. Available at irs.gov/directpay.

Electronic Federal Tax Payment System (EFTPS): Free service for businesses and individuals making estimated or employment tax payments. Requires advance enrollment at eftps.gov.

Credit/Debit Card: Available through approved processors, though processing fees apply (typically 1.87%-1.99% for credit cards).

IRS2Go Mobile App: The official IRS smartphone app supports Direct Pay and card payments.

Setting Up Direct Deposit for Refunds

Ensure your tax returns include accurate direct deposit information. You can split refunds among up to three accounts. If no direct deposit information is provided, refunds may be issued via prepaid Treasury debit card, which may carry usage fees.

Exceptions and Hardship Provisions

Limited exceptions exist for taxpayers without bank accounts or those facing genuine hardship. Contact your CPA or the IRS Taxpayer Advocate Service if you believe you qualify for an exception.

Action Steps

Set up online IRS accounts now. Verify direct deposit information. Enroll in EFTPS if you make estimated payments. Update your records and procedures before the September 30th deadline.