Executive Order 14247 requires nearly all federal tax payments and refunds to be made electronically after September 30, 2025. This means that after this date:
- You will no longer be able to pay your federal income taxes to the IRS by a paper check.
- The IRS will stop issuing paper refund checks.
Why should you care?
For many taxpayers, this represents a major change in how you handle tax payments and refunds. If you currently:
- Mail checks with your tax return,
- Make estimated tax payments by check, or
- Receive refund checks in the mail,
you will need to transition to an electronic method. Missing this transition could cause delays in your tax payments, potential late-payment penalties, or delays in receiving refunds.
On the positive side, electronic payments and refunds are faster, more secure, and less prone to loss or fraud than paper checks.
What should you do?
If you make tax payments by check now is the time to prepare. There are three IRS approved electronic methods, and two of them require advance enrollment that can take several weeks to complete. They are:
- IRS Direct Pay – Free, quick, and allows direct debit from your bank account. No enrollment required, but changes after scheduling a payment require calling the IRS.
- Electronic Federal Tax Payment System (EFTPS) – Best for quarterly estimated payments. Requires you to have or create a login.gov or ID.me account, and EFTPS enrollment can take several weeks to complete so starting now is critical if you want to be set up before September 30. EFTPS provides payment history and scheduling options.
- IRS Online Account – Lets you view balances, notices, and refund status in addition to making payments. Requires you to have or create an ID.me account, and enrollment can take several weeks to complete so starting now is critical if you want to be set up before September 30.
If you receive refund checks, going forward you need to provide account information with your tax return to receive direct deposit of your refund.
2025 Estimated Payments
- Many of our clients have significant estimated tax payments due in October 2025 (covering the first three quarters of the year, which typically are due by September 15) because the IRS postponed federal tax deadlines for eligible taxpayers affected by the Los Angeles County wildfires in January 2025.
- You can still choose to mail a paper check if you make the payment before September 30, 2025. However, if you are relying on the postponed deadline, it is especially important to set up your electronic payment method in advance, as checks will not be an option for the 4th quarter 2025 estimated payment or for any payments after September 30, 2025.
Irrevocable Trusts
The discussion above focuses on individual income tax payments. Irrevocable trusts are subject to the same electronic payment requirements, but are not able to use IRS Direct Pay or create an IRS Online Account. As a result, EFTPS is the only option for irrevocable trusts to make electronic payments. Because registration for EFTPS takes time, trustees should start this process immediately to avoid delays or penalties for missed or late tax payments.
Our recommendation
While we do not prepare or file income tax returns on behalf of our clients, we know that many of you will be affected by this significant change. We encourage you to reach out to your accountant or tax preparer with any questions, and we are happy to assist you as well. Don’t wait until the deadline. Set up your electronic payment method now to ensure a smooth transition. Taking action will help ensure you remain compliant with the new requirement and avoid any disruptions in making or receiving tax payments.
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For further information, please contact:
Elizabeth A. Bawden, Partner, Withersworldwide
elizabeth.bawden@withersworldwide.com
