Starting September 30, 2025, the federal government will no longer issue or accept paper checks for any payments—including IRS refunds, Social Security, and vendor disbursements. This change, driven by a Presidential Executive Order, requires all federal transactions to be made electronically
This transition is designed to reduce administrative costs, enhance the security of the tax payment process, and streamline transactions, ultimately enabling your returns to be processed faster and more efficiently.
What This Means for Your Business
If your business is still paying certain tax obligations by paper check, it is time to begin transitioning to electronic methods. While many HORNE clients have already adopted electronic payment processes, this new requirement will make e-payments standard for most taxpayers.
Your Next Steps
To comply with this upcoming change, the IRS recommends that taxpayers perform the following as soon as possible:
Set Up Direct Deposit
Here’s how:
IRS: Get Your Refund Faster
Use Electronic Payment Methods
Below are two approved payment systems.
Sign up for IRS Direct Pay:
Direct Pay With A Bank Account
Enroll with EFTPS:
Electronic Federal Tax Payment System
If you lack access to electronic methods or there is a particular emergency that would prevent you from paying electronically, there may be an exception for you. However, you will need to consult your tax advisor to ensure you are staying compliant.
As always, our team is on top of IRS updates so you can stay focused on running your business. For more information, visit the IRS website or consult with one of our tax professionals.
