On March 25, 2025, President Trump signed Executive Order 14247 – Modernizing Payments to and From America’s Bank Account. This order requires all federal agencies to phase out paper checks for both payments and collections. By September 30, 2025, the U.S. Treasury will no longer issue or accept paper checks for any federal transaction.
This change impacts tax refunds, Social Security benefits, government vendor payments, and other federal disbursements. After the deadline, payments will be issued electronically through methods like direct deposit, prepaid debit cards, digital wallets, and real-time payments. As we prepare your tax return, we will request your banking information so any refunds can be deposited directly into your account. Going forward, all tax payments—including balances due, payments on notices, and estimated tax payments—will also need to be made electronically.
Why the Change?
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Increased Security: Paper checks are far more susceptible to loss, theft, and fraud than electronic transfers.
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Faster Payments: Electronic delivery speeds up processing and reduces delays.
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Cost Savings: Printing, mailing, and processing paper checks costs the government—and taxpayers—hundreds of millions annually.
What You Should Do Now
To keep your refunds and payments running smoothly after the September 30, 2025 deadline, we recommend taking these steps now:
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Confirm your banking details with the IRS and other federal agencies to ensure your information is current.
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Set up direct deposit or another electronic payment method as soon as possible so you’re ready before the change takes effect.
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Review your payment options for upcoming deadlines—including balances due on October 15, 2025 and your 4th quarter estimated payment due in January 2026. If you haven’t already, creating an IRS online account is a great way to track and manage these payments. You can find approved payment methods on the IRS payment webpage.
While limited exceptions exist for those without banking access, in emergency situations, or for certain national security-related payments, most taxpayers will be able to move to electronic payments without issue.
Need Assistance with Electronic Payments?
CTBK is here to support you through these changes. If you have questions about how this executive order impacts your personal or business tax situation, please contact us. We’re committed to helping you navigate this transition smoothly and securely
