The IRS Is Going Digital: What You Need to Know

The IRS is modernizing how it handles tax payments. Beginning September 30, 2025, paper refund checks will largely disappear, replaced by electronic payments. This change is designed to make paying and receiving taxes faster, safer, and easier to track.

For taxpayers, this is the perfect time to learn how to pay taxes online and ensure your IRS direct deposit refund is set up correctly. Businesses, trusts, and frequent filers can benefit from using EFTPS to schedule and monitor payments, while individuals can rely on IRS Direct Pay for quick, fee-free transactions.

Key Changes and Timeline

  1. Paper Refund Checks Are Ending (September 30, 2025)
    Most individuals will receive refunds via direct deposit or another electronic method. The IRS will provide guidance for any exceptions, ensuring a smooth transition.
  2. All IRS Payments Will Go Digital Eventually
    Following the March 25, 2025 Executive Order 14247, all federal payments and collections must eventually move to electronic methods wherever legally allowed. While some payment options remain temporarily, preparing now is wise.

How to Pay the IRS Electronically

Here are the main options to stay ahead:

  • EFTPS (Electronic Federal Tax Payment System) : Best for businesses, trusts, estates, and those who pay frequently. Schedule payments in advance, track your transactions, and avoid last-minute stress.
  • IRS Direct Pay : Designed for individuals, this option allows fast, direct payments from checking or savings accounts—no login required.
  • Electronic Funds Withdrawal (EFW) : Link your bank account when e-filing a return or extension to authorize automatic debit.
  • Credit/Debit Card or Digital Wallet : Some approved third-party processors allow payments using cards or digital wallets. Fees may apply, but these options add flexibility.

Planning for a Paperless Tax System

Even though paper checks are still valid for now, relying on them long-term is risky. Transitioning to electronic payments now ensures:

  • Faster refunds through direct deposit
  • Secure transactions that reduce risk of lost or stolen checks
  • Easier record-keeping and tracking for audits or reporting

Accessibility Considerations : Not all taxpayers have bank accounts. Programs like FDIC’s GetBanked offer low- or no-cost banking solutions. The Taxpayer Advocate Service also provides resources for individuals who may face challenges transitioning to electronic payments.

Steps to Take Today

  1. Set up EFTPS if you are a business, trust, or frequent filer.
  2. Use IRS Direct Pay for individual payments.
  3. Add direct deposit info to your tax return to receive refunds quickly.
  4. Confirm bank information is accurate before the next tax season.
  5. Stay updated on IRS communications about mandatory electronic payments.

Protect Yourself from Scams

Electronic payments are secure, but phishing scams are on the rise. Remember: the IRS will never email or text asking for payment information. Report suspicious messages to phishing@irs.gov.

Pro Tip: Start switching to electronic payments today. It’s easier, safer, and ensures your refunds and payments are processed without delays once paper checks are gone.