Electronic Payment Mandate
Electronic PaymentsIRS Payment Changes
By: Brent Hagen
We want to inform you of a significant change in how the IRS will issue tax refunds and accept payments, following President Trump’s Executive Order 14247, “Modernizing Payments To and From America’s Bank Account,” signed on March 25, 2025.
What’s Changing?
The U.S. Treasury currently plans to discontinue the issuance of paper checks for all federal disbursements, including IRS tax refunds effective September 30, 2025. After this date, all federal payments—including tax refunds—will be made electronically, unless an exception applies for individuals who do not have access to banking or electronic payment systems. In addition, payments made to the federal government, including tax payments, must also be made electronically.
What Does This Mean for You?
If you are expecting a tax refund, you will need to provide valid U.S. bank account information to receive your refund via direct deposit.
If you do not have a U.S. bank account, you may need to seek an exception or alternative payment method, but these will be limited and subject to Treasury approval.
For tax payments, electronic payment methods are now the standard and are strongly encouraged to avoid delays and penalties. Accepted electronic methods include direct deposits, debit and credit card payments, digital wallets, and real-time payment systems.
Tax Payment Options: The IRS offers several secure electronic payment options:
Direct Pay (from your bank account): https://www.irs.gov/payments/direct-pay
Electronic Federal Tax Payment System (EFTPS): https://www.eftps.gov/eftps/
Debit or Credit Card or Digital Wallet Payments (fees apply): https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card
IRS2Go Mobile App: https://www.irs.gov/newsroom/irs2goapp
IRS Online Account: https://www.irs.gov/payments/your-online-account
For more information on all payment options, visit: https://www.irs.gov/payments
Action Steps
Please ensure you have a U.S. bank account available for direct deposit of any IRS refunds and payment of tax obligations.
Our clients: For future tax filings, please let us know if you would like us to set up ACH payments for your tax obligations prior to signing your e-file authorization (typically Form 8879).
Our clients: Alert us if you change bank accounts for tax payments or refunds.
If you don’t already have an IRS Online Account, we recommend setting one up. It provides easy and secure access to your tax information, convenient payment and refund tracking, and a secure option for communicating with the IRS.