Beginning September 30, 2025, a new executive order (EO 14247) requires nearly all federal payments, including tax refunds and federal tax deposits, to be processed electronically. This shift is significant for both individuals and businesses. At Pivot CPAs, we’re helping clients navigate this change smoothly so they can avoid delays, fees, and unnecessary disruptions.

What’s Changing and Why It Matters

Under the new mandate, the federal government will eliminate most paper check disbursements and receipts, replacing them with electronic fund transfers, from direct deposit to digital wallets. The Treasury Department made this move to eliminate inefficiencies, reduce fraud, and save taxpayer dollars. Paper systems cost over $657 million in FY 2024 alone, and Treasury-issued checks are 16 times more likely to be lost or altered than an electronic transfer.

This isn’t limited to tax refunds. It includes:

• All tax payments submitted to the IRS

• Social Security and other federal benefit disbursements

• Vendor payments and other federal transfers

Are There Any Exceptions?

Yes—but they’re limited. Exceptions may be granted for:

• Individuals without access to banking services

• Emergency or disaster-related payments

• National security or law enforcement-related payments

• Other special cases, as authorized by the Treasury Secretary

These exceptions require approval and aren’t automatic, so it’s best to proactively set up electronic options now.

What Pivot CPAs Recommends: Steps to Prepare

1. Update or Create Your IRS Account

Ensure your IRS profile has accurate banking details to receive refunds electronically.

2. Enroll in Electronic Refunds

Opt into direct deposit via your tax software or your tax preparer.

3. Use IRS-Approved Payment Methods

Choose from IRS Direct Pay, EFTPS, or the IRS2Go mobile app for secure, digital tax payments.

4. Stop Mailing Checks Near or After September 30, 2025

After the deadline, paper checks may be returned, delayed, or incur penalties.

5. Plan Ahead if You Anticipate Needing an Exception

If you’re unbanked or have special circumstances, contact Treasury or the IRS soon to explore options.

What Could Go Wrong If You Don’t Act

• Delays in Refund Processing — Paper check delays can hold up funds significantly.

• Inconvenience or Missed Deadlines — Paper checks may be rejected after Sept. 30, delaying compliance.

• Increased Risk of Penalties — Missing deadlines due to rejected payment methods could trigger interest or penalties.

• Exclusion from Exceptions — Waiting too long may limit your ability to secure an exception if needed.

What to Do Next / Timeline:

Time Period Recommended Action

Now–July 2025 Update IRS account, enroll in direct deposit, explore electronic payment options

August–September 2025 Finalize electronic payment setup to avoid last-minute issues

After September 30, 2025 Use only approved electronic payment methods unless you have an authorized exemption

September 30, 2025, is a firm deadline. Pivot CPAs is here to ensure this transition is seamless– no paper checks, no delays, no stress. Need help updating your IRS profile, setting up direct deposit, or strategizing payments? Let’s connect and prepare together.