Beginning September 30, 2025, the IRS will no longer accept paper checks for tax payments or issue refunds by mail. Instead, all payments and refunds will be processed electronically. This move is intended to modernize the tax system, reduce fraud, and improve efficiency for both taxpayers and the government. The federal government has identified significant costs and risks with continuing to process paper checks. Paper checks are vulnerable to fraud, theft, or loss compared to electronic methods.

Who will be impacted

For taxpayers on extension for 2024, this will affect returns filed after September 30, 2025.

Estimated tax payments made after September 30, 2025 should be made electronically.

State and Local estimates are not affected by this change.

Benefit checks will also be impacted. Individuals currently receiving government benefits by paper check will need to transition to an electronic method.

Options available starting September 30, 2025

Refund checks will no longer be mailed. Tax refunds will now be issued electronically.

• Direct Deposit
  • For H2R CPA clients, we can add your bank account and routing number to our software to be e-filed with the tax return
• Prepaid Debit Cards
  • Will include an activation process to verify identity
• Digital Wallets
  • PayPal
  • Venmo
  • Click to Pay

Mailed checks will no longer be accepted. Payments must be made electronically through approved secure IRS methods.

• Electronic Funds Withdrawal
  • Similar to direct deposit, for H2R CPA clients, we can add a bank account and routing number to our tax software to be e-filed with your tax return
• Create an IRS Online Account
  • An online account will allow you to monitor tax payments made
  • Individuals – https://www.irs.gov/payments/online-account-for-individuals
  • Business – https://www.irs.gov/businesses/business-tax-account
•  IRS Direct Pay
  • https://www.irs.gov/payments/direct-pay-with-bank-account
  • A free service that allows you to pay directly from your checking or savings account
• Electronic Federal Tax Payment System (EFTPS)
  • https://www.eftps.gov/eftps/
  • Requires early enrollment. It can take up to two to three weeks to receive a PIN sent through the mail to use EFTPS
  • A free service, especially useful for businesses, that requires enrollment before use
• Debit/credit card, or digital wallet option
  • https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card
  • Be aware processing fees may apply

Negative impacts of mailing checks

If a check is mailed to the IRS after September 30, 2025, it will likely be returned and considered an unpaid tax liability. Starting on this date, the IRS will no longer accept paper checks for tax payments, requiring all payments to be made electronically.

Here is what you can expect if you mail a check after the deadline:

• Payment will not be processed. The IRS will stop processing payments made by paper check as part of a move to modernize its payment systems.
• Check will be returned. The mailed check will not be accepted and will be sent back to you.
• Penalties and interest will apply. Because the tax payment is considered unpaid, the IRS will assess failure-to-pay penalties and interest on the outstanding balance. Penalties and interest continue to accrue until the debt is paid in full.

There will be limited exceptions to this rule. Certain individuals without access to banking services, those facing emergencies or hardships, or cases involving national security and law enforcement may still be eligible to use paper-based options. These exceptions will be granted at the discretion of the Treasury Department.

Questions

If you have questions about setting up direct deposit, choosing the right payment method, or preparing your business or household for this transition, feel free to contact your H2R CPA liaison and they will be happy to assist you.

Share:

•