Paper is Out – Digital is In
Big news, tax nerds: the IRS is officially phasing out paper checks by September 30, 2025. That’s right—no more writing checks to Uncle Sam and no more refund checks in your mailbox. Thanks to a March 2025 executive order, every federal agency (IRS included) is going fully digital.
So what does this mean for you and your clients? Let’s nerd out.
Key Changes Every Taxpayer Needs to Know
Key Changes Every Taxpayer Needs to Know-
Goodbye Paper, Hello Pixels: After September 30, 2025, the IRS will no longer accept paper checks for most payments and will no longer issue refunds by paper either.
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Deadlines Matter: All taxpayers should be ready to pay and receive electronically by September 30. If you’ve got an extended return (Form 1040), circle October 15, 2025, on your calendar.
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Electronic Payments Become the Norm: Existing tools stick around, but now they’re mandatory:
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Direct Pay (free bank transfers)
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EFTPS (Electronic Federal Tax Payment System—our favorite acronym)
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Debit/Credit Cards or Digital Wallets (processing fees apply)
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Electronic Funds Withdrawal (built into e-file software)
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New & Improved Digital Goodies
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IRS Online Accounts: Check balances, make payments, track history, and manage plans all in one dashboard.
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Better Online Payment Agreements: More people can now set up long-term payment plans online (balances up to $50k) with instant approval.
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Cash Still Counts (Sort Of): Retail partners will take IRS payments in cash, but there are daily caps and small fees.
What Clients Should Do Now
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Set Up Direct Deposit for refunds—faster and safer.
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Stop Writing Checks and pick your digital weapon of choice.
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Open an IRS Online Account to manage everything in one place.
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Review Installment Agreements—switch to Direct Debit if possible for lower fees.
Are There Exceptions?
Yes, but they’re limited. Folks without bank accounts or with special circumstances will have options, and the IRS plus the Taxpayer Advocate Service are working on solutions. But for most taxpayers, electronic is the new default.
More to come as we learn….
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