IRS Tax Changes – Effective Sept. 30, 2025 Premier Bank
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IRS Tax Changes - Sept. 30, 2025

IRS Electronic Tax Payment Requirement – FAQ
Effective Date: September 30, 2025

❓ What is changing?
Beginning September 30, 2025, the IRS will no longer accept paper checks for federal tax payments or issue paper refund checks. All payments and refunds must be processed electronically.

❓ Why is this happening?
This change is mandated by Executive Order 14247, signed in March 2025, to modernize federal payment systems. The goal is to reduce fraud, delays, and inefficiencies associated with paper-based transactions.

❓ Who is affected?
• Individual taxpayers
• Businesses
• Trusts and estates
• Anyone making payments to or receiving refunds from the IRS

❓ What are the approved electronic payment methods?
• IRS Direct Pay (free, no enrollment required)
• Electronic Federal Tax Payment System (EFTPS)
• IRS Online Account (requires ID.me login)
• Electronic funds withdrawal during e-filing
• Debit/credit card payments via authorized processors
• Digital wallets (where supported)

❓ What if I don’t have a bank account?
Exceptions may apply for individuals without access to banking services. The Treasury is expected to release guidance on alternative options, such as prepaid debit cards.

❓ What happens if I send a paper check after September 30, 2025?
Paper checks will be rejected. This could result in:
• Missed payments
• Late-payment penalties
• Delayed refunds

❓ Are there any exceptions?
Limited exceptions may apply for:
• Individuals without banking access
• Emergency situations
• National security concerns
Final guidance is pending.

❓ How should I prepare?
• Set up an IRS Online Account
• Enroll in EFTPS (takes several weeks)
• Verify your bank details for direct deposit
• Include bank info on your tax return to receive refunds electronically

❓ What about trusts and estates?
Trusts and estates cannot use IRS Direct Pay or Online Accounts. Their only options are EFTPS or wire transfers, both of which require advance setup.

❓ Does this affect state tax payments?
No. This mandate applies only to federal payments. State tax procedures remain unchanged.