In March 2025, the President signed Executive Order 14247, titled Modernizing Payments to and From America’s Bank Account. While the name sounds straightforward, the impact of this order will be significant for many taxpayers.
The executive order directs all federal agencies, including the IRS and the U.S. Treasury, to transition away from paper checks and toward electronic payments and receipts wherever legally permitted. Under the order, paper checks for federal payments and refunds are scheduled to be eliminated as of September 30, 2025, with electronic payment methods becoming the default “as soon as practicable.”
What Does This Mean for Taxes?
For several years, the IRS has encouraged electronic payments, but this order accelerates the shift. IRS instructions for 2025 tax forms such as Forms 1120, 940, and 945 already state that federal tax deposits must be made electronically using approved methods such as:
- EFTPS (Electronic Federal Tax Payment System)
- IRS Direct Pay
- IRS Business Tax Accounts
IRS publications, including Notice 931, reinforce this requirement by confirming that federal tax deposits must be made via electronic funds transfer (EFT).
Importantly, this change applies not only to tax payments, but also to refunds and other transactions between taxpayers and the federal government.
Follow this video to create your ID.ME Account in order to make electronic payments through the IRS website.
Why This Matters
While electronic payments may be convenient for many, this shift raises real concerns—especially for older taxpayers, rural residents, small business owners, and individuals without reliable access to online banking or digital tools. Others may have privacy concerns, security concerns, or long-standing preferences for paper-based payments that are lawful and verifiable.
Additionally, electronic systems are not immune to risk. Outages, access issues, identity theft, and cybersecurity incidents do occur. Eliminating paper alternatives removes a long-standing backup option that has helped taxpayers comply with their obligations for decades.
What to Expect Next
As payment deadlines approach—such as quarterly estimated tax payments, balances due with returns, and payroll deposits. Many taxpayers may begin receiving IRS letters and notices related to electronic payment requirements. This may feel sudden or confusing, particularly for those who have always paid by check or money order.
How NSO Can Help
At NSO, we understand that these changes can feel overwhelming. Our team is closely monitoring IRS guidance and helping clients understand:
- Which electronic payment options apply to their situation
- How to set up secure payment methods
- Whether any exceptions or accommodations may apply
If you have concerns about electronic payments or have received an IRS notice you don’t understand, please contact our office at (317) 588 – 3131. We’re here to help you navigate these changes confidently and avoid unnecessary penalties or delays.
