Recent regulatory changes require almost all payments to and from the federal government to be made electronically. This applies to individuals, businesses, trusts, estates, and federal benefit recipients.
Key Dates
- September 30, 2025: Paper checks ended for most federal disbursements and receipts, including IRS refunds and tax payments.
- October 15, 2025: Taxpayers should have been fully transitioned to electronic methods to receive payments by this date.
- March 25, 2026: Electronic payment requirements apply to federal payments made after this date.
Payments FROM the Federal Government
- Refunds and federal disbursements must be issued by direct deposit, Direct Express®, or another Treasury-approved electronic method.
- Paper checks are only used in limited situations, such as missing or invalid banking information.
- Refunds cannot be sent to credit card accounts or foreign financial institutions.
- For some returns, such as Form 943, refunds are not available by direct deposit; overpayments may instead be applied to the next return.
- Most refunds are issued within 21 days when returns are filed electronically with valid banking information.
Payments TO the Federal Government
- Tax payments must be made electronically through EFTPS, IRS Direct Pay (individuals), wire transfers, or other approved systems.
- EFTPS deposits must be scheduled by 8 p.m. ET the day before the due date.
Next Steps for Taxpayers
- Update or provide direct-deposit information to the IRS or relevant agencies.
- Enroll early in EFTPS if required, especially for trusts and estates.
- Keep records of electronic payments and disbursements for at least three years.
For more information please visit the IRS website at Modernizing payments to and from America’s bank account | Internal Revenue Service.
