Required Electronic IRS Payments: What Is Changing—and How to Prepare

Reasons Behind the IRS Transition to Electronic Payments

The IRS is transitioning to electronic tax payments to enhance the efficiency with which taxpayers manage their finances. Starting on September 30, 2025, the issuance of paper refund checks for individuals will be gradually discontinued. Although traditional payment methods such as EFTPS, IRS Direct Pay, or paper checks remain available for the time being, adopting electronic payment methods sooner will facilitate quicker, more secure, and more easily trackable transactions. Familiarizing yourself with online tax payment processes now can save time and avert possible delays when paper checks are no longer an option. Additionally, establishing IRS direct deposit for refunds ensures that you receive your funds promptly and securely. Official information can be accessed in the IRS news release and Executive Order 14247.

What’s Changing—and When

1. Refunds Will Transition to Digital First (September 30, 2025)
   Most paper refund checks will be replaced by direct deposit or other secure electronic payment methods. A small number of exceptions will continue to exist, and the IRS will provide guidance for the 2025 tax returns before the 2026 filing season.
2. Incoming Payments Will Transition Later
   The Executive Order issued on March 25, 2025 instructs federal agencies, including the IRS, to convert all payments and collections to electronic methods whenever legally permissible. While current payment options will still be available for the time being, it is advisable to start preparing now for a fully digital system.

How to Pay the IRS Electronically

Here’s a quick guide to your main options:

1. EFTPS (Electronic Federal Tax Payment System): This choice is ideal for businesses, trusts, estates, and regular taxpayers. It enables you to conveniently schedule and monitor your payments; however, be aware that the enrollment process may take several days, so it is advisable to arrange it ahead of time.
2. IRS Direct Pay: This approach is quick, complimentary, and suitable for individuals. You can make payments directly from your checking or savings account without the necessity of creating an account or logging in.
3. Electronic Funds Withdrawal (EFW): This alternative allows you to authorize a direct debit from your bank account when electronically filing your tax return or requesting an extension.

Paper Checks Are Still an Option… For the Moment

Although paper checks are currently valid, they will not last indefinitely. Taking steps now to move to electronic payment methods will prevent future inconveniences. You can find all the options available on the IRS payment page.

Accessibility and Exceptions

Not all individuals have the ability to obtain a bank account. There are few options available, including prepaid debit cards and digital wallets. The FDIC’s GetBanked initiative can assist in locating affordable or free banking solutions. Additionally, the Taxpayer Advocate Service promotes the safeguarding of taxpayers who might encounter difficulties during this transition.

Action Steps: Prepare Now

1. Companies, trusts, estates, and frequent payers: configure EFTPS.
2. Individuals: Employ IRS Direct Pay for one-off payments.
3. Provide direct deposit information on your tax return to receive quicker refunds.
4. Verify and update your banking details today—avoid waiting until tax season.
5. Keep an eye out for IRS announcements on required electronic payments.