Washington, US: The Internal Revenue Service (IRS) is set to implement a significant new rule starting September 30, 2025, that will affect millions of taxpayers across the country. This new regulation mandates a complete transition to electronic payments for tax refunds and payments, effectively ending the era of paper checks for these transactions.
Under this new rule, the IRS will no longer issue paper checks for tax refunds nor accept paper checks for tax payments beginning in late September 2025. This shift is part of a broader federal initiative to modernize financial transactions with the government, improving efficiency, enhancing security, and reducing costs.
The move to electronic payments means that taxpayers will receive refunds directly via direct deposit into their bank accounts. Likewise, all payments to the IRS must be made through electronic methods. The IRS has made available several convenient options for making payments electronically, including IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), debit or credit card payments, digital wallets through approved processors, the IRS2Go mobile app, and electronic funds withdrawal when e-filing tax returns.
The transition aims to accelerate the processing and delivery of refunds, drastically reduce fraud and theft risks associated with paper checks, and support the government’s goal to modernize the management of public funds. Taxpayers are encouraged to prepare for this change by setting up electronic payment and refund mechanisms ahead of the deadline to avoid delays or complications.
While the standard practice will be electronic only, the IRS will allow certain limited exceptions. These exceptions will be available for individuals without access to banking services or in emergency situations, although such cases are expected to be rare. The IRS is collaborating with financial institutions to assist unbanked individuals in establishing digital payment capabilities.
This new IRS regulation is part of an executive order focused on modernizing payments to and from America’s bank account, signed into effect in early 2025. Taxpayers should visit the official IRS website or consult with tax professionals to understand the available electronic payment methods and ensure smooth compliance with the new rules.
This groundbreaking move marks a major step in digitizing tax administration in the United States and will have a wide-reaching impact on taxpayers starting in September 2025. Millions will need to adapt to this new electronic system, which promises faster, safer, and more efficient handling of tax refunds and payments. Individuals and businesses alike are advised to act promptly to avoid any disruptions during tax seasons and to enjoy the benefits of a modernized IRS payment process.
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