The End of Paper Checks: What You Need to Know

The End of Paper Checks

On September 30th, 2025 Executive Order 14247 Modernizing Payments to and from America’s Bank Account will go into effect. This order requires a shift to electronic funds transfer (EFT) for nearly all IRS-related transactions. According to The White House, maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in the 2024 fiscal year. The goal is to streamline processing, cut costs, and enhance security against fraud.

“With paper checks over 16 times more likely to get lost, stolen, altered, or delayed, we encourage those still receiving paper checks to make the switch today. Electronic payments such as direct deposit are safer than checks, allow quicker access to funds, and have less risk of fraud,” according to Fiscal Service Chief Disbursing Officer Linda Chero.

Who Does this Effect?

All executive departments and agencies must transition to modern, electronic funds transfer methods such as: direct deposit, debit/credit card payments, digital wallets, and real-time transfers. Taxpayers who have traditionally requested a paper refund check must now provide bank routing and account numbers on their tax return if they want to receive their money without delay. The Treasury will phase out physical lockbox services and expedite electronic collection of Federal receipts.

For the unbanked population, which makes up millions of Americans, this shift poses particular challenges. While the Treasury is offering alternatives like the Direct Express® card, many people who rely on cash and check-based systems will face hurdles in adapting to electronic payments. Legal and fiduciary entities such as trusts and estates may also encounter added complexity as electronic transfers become mandatory.

This includes:

IRS Taxes and Refunds
Fees and Fines
Loans and Disbursements

Paper checks mailed to the IRS after September 30th, 2025, will no longer be accepted and ALL payments must be made electronically.

Exceptions to the Rule

The Treasury Secretary has outlined a few exceptions, including:

Individuals without access to banking services or electronic payment systems
Certain emergency payments where electronic disbursement would cause undue hardship
National security or law enforcement related activities where non-EFT transactions are necessary or desirable
Other circumstances as determined by the Secretary of the Treasury, as reflected in regulations or other guidance

Individuals or entities qualifying for an exception under this section or other applicable law shall be provided alternative payment options.

Preparing for the Transition

For most taxpayers, preparation means taking a few proactive steps now to avoid disruption later. The most important action is to make sure banking information is accurate and up to date with the IRS, Social Security Administration, or any other relevant federal agency. Even individuals who already receive electronic payments should double-check their records to prevent misdirected funds.

Those who are not yet enrolled in direct deposit should take advantage of services such as GoDirect.gov, which makes the process straightforward. Taxpayers filing returns should always include their routing and account numbers so refunds can be issued electronically. For those who prefer to pay the IRS or other agencies by check, it is time to get comfortable with secure electronic platforms like IRS Direct Pay or EFTPS. These systems are not only safer but also more convenient than mailing a check.

The government has emphasized that limited waivers will be available for hardship cases, though these will be exceptions rather than the rule. Individuals who believe they qualify should apply well before the September deadline. Another important precaution is to be alert to scams. Fraudsters may exploit this transition by sending fake emails, calls, or texts that claim to help with the switch to electronic payments. Taxpayers should only trust official .gov websites and verified government phone numbers when updating sensitive financial details. See the most recent IRS and state scams going around here.

How to Set up Electronic Payments

Visit IRS.gov for more information on the payment options below:

Direct Pay: For individuals making payment directly from their bank account
Electronic Federal Tax Payment System (EFTPS): For businesses and individuals, including scheduling future payments
IRS Online Account: View balances, previous tax returns and make payments
Debit or Credit Card: Available through IRS-approved payment processors (fees may apply)
ACH Transfers or Wire Transfers: Recommended for high-dollar transactions

Looking Ahead

The end of paper checks marks a new chapter in federal financial management. While the change may be disruptive in the short term, the long-term benefits are clear: faster payments, reduced costs, and stronger protections against fraud. For taxpayers and beneficiaries, the message is equally clear: prepare now, switch to direct deposit or another electronic method, and don’t wait until the last minute.

September 30, 2025 is a date every taxpayer should mark on their calendar. By taking steps today, you can ensure a smooth transition and avoid any interruptions in receiving or sending payments.