Executive Order 14247, titled “Modernizing Payments to and From America’s Bank Account”, was signed on March 25, 2025. The executive order mandates a comprehensive phase out of paper check transactions by the federal government including payments to and from taxpayers.
Effective September 30, 2025
Federal agencies will stop issuing paper checks for all disbursements, which include tax refunds, Social Security benefits, vendor payments, etc. All payments to the government, including taxes, fees, fines, etc., must be made electronically.
For taxpayers on extension for 2024, this will affect returns filed after September 30, 2025.
Additionally, all payments made to the Federal Government should be processed electronically as soon as practical. This may affect estimated payments made after September 30, 2025, including fourth-quarter estimated payments due January 15, 2026.
While guidance from the IRS has not been issued on the timing, we recommend preparing for and making all payments electronically after September 30, 2025.
Permitted Electronic Methods include:
• Direct deposit
• IRS Direct Pay
• Electronic Federal Tax Payment System (EFTPS)
• Electronic funds withdrawal during e-filing
• Payments via debit or credit card
• Digital wallets and real-time systems
EFTPS requires early enrollment, as it can take two to tthree weeks, as a PIN is sent through the mail, which can take additional time. If you are an entity that will need to use EFTPS, we recommend setting up that account as soon as possible. You can find step-by-step instructions on how to do so by clicking here.
If you need any additional information on how to set up online accounts or EFTPS, please get in touch with your personal Sciarabba Walker contact or email us at info@swcllp.com.