Mandatory Payments in IRS: What is Changing—and How to Prepare
Why the IRS Is Moving to Electronic Payments
The IRS is moving toward IRS electronic tax payments to streamline the way taxpayers handle their finances. Beginning September 30, 2025, paper refund checks for individuals will gradually be phased out. While traditional options like EFTPS, IRS Direct Pay, or paper checks are still available for now, using electronic methods early will help ensure your payments are faster, more secure, and easier to track. Learning how to pay taxes online now can save time and prevent potential delays when paper checks are no longer accepted. Plus, setting up IRS direct deposit refunds guarantees you receive your money quickly and safely.Official details can be found in the IRS news release and Executive Order 14247.
What’s Changing—and When
1. Refunds Go Digital First (September 30, 2025)
Most paper refund checks will be replaced by direct deposit or other secure electronic payment methods. Only a small number of exceptions will remain, and the IRS will provide guidance for 2025 tax returns ahead of the 2026 filing season.
2. Incoming Payments Transition Later
The Executive Order issued on March 25, 2025 directs federal agencies, including the IRS, to transition all payments and collections to electronic methods whenever allowed by law. While current payment options are still available for the time being, it’s smart to start preparing now for a fully digital system.
How to Pay the IRS Electronically
Here’s a quick guide to your main options:
- EFTPS (Electronic Federal Tax Payment System): This option is perfect for businesses, trusts, estates, and frequent taxpayers. It allows you to easily schedule and track your payments, but keep in mind that enrollment can take a few days, so it’s best to set it up in advance.
- IRS Direct Pay: This method is fast, free, and ideal for individuals. You can pay directly from your checking or savings account without needing to create an account or log in.
- Electronic Funds Withdrawal (EFW): This option lets you authorize a direct debit from your bank account when e-filing your tax return or filing an extension.
- Other Options: The IRS also allows taxpayers to pay taxes online using select credit or debit cards and certain digital wallets through approved processors. While processing fees may apply, this gives you another convenient IRS electronic tax payment option.
Paper Checks Are Still an Option… For Now
While paper checks remain valid, they won’t be around forever. Planning now to switch to electronic methods will save you headaches later. You can see all available options on the IRS payment page.
Accessibility and Exceptions
Not everyone has access to a bank account. Limited alternatives, such as prepaid debit cards or digital wallets, are available. The FDIC’s GetBanked program can help find low- or no-cost banking solutions. The Taxpayer Advocate Service also encourages protecting taxpayers who may face challenges during this transition.
Action Steps: Prepare Now
- Businesses, trusts, estates, and frequent payers: set up EFTPS.
- Individuals: Use IRS Direct Pay for one-time payments.
- Add direct deposit info to your tax return for faster refunds.
- Check and update your bank info today—don’t wait until tax season.
- Watch for IRS guidance on mandatory electronic payments.
Stay Safe: Avoid Phishing Scams Electronic payments are secure, but scams exist. The IRS will never email or text asking for payment information. Report suspicious messages to phishing@irs.gov and see how to report tax scams.