Key Questions: How Does the Push to Digitize All Federal Payments To and From the Federal Government Impact You?
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Presidential Executive Order 14247 issued March 25, 2025, requires the Secretary of the Treasury to cease issuing paper checks for federal disbursements by Sept. 30, 2025, and payments sent to the Treasury (including tax payments) should be processed electronically as soon as practicable to the extent permitted by law.
The purpose of this order is to promote operational efficiency, i.e., reducing costs and minimizing fraud, by mandating the transition to electronic payments for all federal disbursements and receipts.
Effective October 1, 2025, the Treasury will transition federal disbursement operations to a designated third-party provider. This shift will significantly reduce the government’s capacity to issue paper checks, which will be limited to qualifying exceptions.
The Treasury will continue to release additional details on how and when electronic receipts will be implemented, but it is important to note that paying any tax payments by check may soon become obsolete except for qualifying exceptions.
The Treasury will grant limited exceptions where electronic payments and collections methods are not feasible, including individuals who do not have access to banking services or electronic payment systems.
In the meantime, taxpayers can take proactive steps by establishing an IRS online account at Online account for individuals | Internal Revenue Service and becoming familiar with the various electronic payment options currently available.
- Direct pay with bank account – https://www.irs.gov/payments/direct-pay-with-bank-account
- IRS2Go mobile app – https://www.irs.gov/help/irs2goapp
- Electronic funds withdrawal – https://www.irs.gov/payments/pay-taxes-by-electronic-funds-withdrawal
- Electronic Federal Tax Payment System (EFTPS) – https://www.irs.gov/payments/eftps-the-electronic-federal-tax-payment-system
- Debit or credit card and digital wallets – https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card
For more information, please contact your tax advisor.