IRS to Require Electronic Refunds and Payments Beginning Sept. 30, 2025

Under Executive Order 14247, “Modernizing Payments To and From America’s Bank Account,” the IRS will transition to fully electronic processing of refunds and payments beginning after September 30, 2025. Paper checks will be phased out, except for taxpayers without access to electronic banking. The rule applies to individuals, businesses, estates, and trusts.

Why the change? E-payments reduce processing times and errors, lower costs, and improve security.

Refunds will be issued via direct deposit, IRS-issued debit cards, or prepaid debit cards. Payments—including estimated taxes and balances due—must be made electronically “as soon as practicable” through approved platforms.

Options for individuals: IRS Direct Pay, EFTPS, IRS Online Account, digital wallets, credit cards, and wire transfers.

Options for businesses: EFTPS, wire transfers, and IRS Direct Pay.

Options for estates and trusts: EFTPS, wire transfers.

EFTPS Enrollment

For those using EFTPS, early enrollment is recommended. The process takes about two weeks to finalize because a PIN is mailed to the taxpayer before the account can be activated. With the October 15 tax filing deadline following shortly after the September 30 rule change, taxpayers should allow enough time for EFTPS enrollment to be completed. Enrollment is started at www.EFTPS.gov with a tax identification number, banking details, and contact information.

Challenges remain for those without bank accounts, U.S. expats (who must maintain U.S.-based accounts), and estates or trusts facing limited payment options. No extensions or exemptions have been announced, though the government has acknowledged these issues and is exploring solutions.

This shift marks a major modernization effort, replacing paper-based systems with faster, more secure, and more efficient electronic methods.

Share this article...

We are here to help you succeed!

Contact Coker James to begin your journey.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .
I consent to receive SMS messages and agree with the

STAY INFORMED!

Receive the latest in tax and small business updates that affect your finances and growth prospects.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

Social Media

Location

3550 George Busbee Parkway NW, Suite 150
Kennesaw, GA 30144