IRS to Eliminate Paper Checks Starting September 30, 2025

Starting September 30, 2025, the IRS will no longer accept paper checks for tax payments or issue paper checks for refunds, marking a major shift in how federal taxes are paid and refunded.

What This Means for You

If you currently mail paper checks to the IRS or receive your tax refund by check, this change affects you:

• You’ll need to pay any tax due electronically—including estimated tax payments, balances due, and extension payments.
• You’ll need to receive tax refunds by direct deposit to a valid U.S. bank account.

⚠️ Note: This change applies to federal taxes only. State tax agencies (like the California FTB or New York State) may still allow paper checks, unless they adopt similar policies in the future. That said, Evolution Tax & Legal always recommends electronic filing for secure and timely payments and refunds.

Approved Electronic Payment Methods

The IRS offers several secure options to pay taxes electronically, including:

1. IRS Direct Pay (ACH transfer): Pay directly from your checking or savings account here: https://www.irs.gov/payments/direct-pay

2. EFTPS (Electronic Federal Tax Payment System): A free federal payment platform, useful for recurring payments: https://www.eftps.gov

3. Direct Debit through your tax return: When we e-file your return, we can schedule the payment directly from your bank account.

Refunds Will Require a U.S. Bank Account

The IRS will no longer issue paper refund checks. Instead:

• Refunds will be issued via direct deposit to the U.S. bank account you specify when your return is filed.
• You’ll need to provide accurate routing and account numbers for a checking or savings account.

How We’re Helping

We know this is a change for some clients, particularly those who have always preferred paper checks. As part of our process:

• We will confirm your bank information at the time we file your tax return or estimates.
• We can assist you in setting up IRS Direct Pay or EFTPS, depending on your needs.

For a video tutorial on how to make an electronic payment, please click here.

Why This Is Happening

This change is the result of an Executive Order signed in April 2025 that directs federal agencies to reduce costs and modernize operations.

The move to electronic payments is reported to reduce the risk of fraudulent and lost payments while saving taxpayers an estimated $657 million in printing and mailing costs.

Next Steps for Clients

You don’t need to do anything today— but before your next payment or refund is processed:

• Be ready to share your U.S. bank routing and account information.
• Choose an approved electronic payment method.
• Let us know if you have any concerns or questions about setting up your payment method.

We look forward to supporting your 2025 tax consulting and preparation needs.