Effective September 30, 2025, U.S. Taxpayers and Businesses will see a significant change in the way the federal government issues and receives taxpayer federal payments. The upcoming change affects tax refunds, estimated tax payments, Social Security benefits, and other federal disbursements.
Background: On March 25, 2025, the President signed an executive order titled “Modernizing Payments to and From America’s Bank Account” which orders the U.S. Department of the Treasury to cease issuing and accepting paper checks for nearly all federal payments. Instead, all payments will be made electronically, with limited exceptions.
What This Means for You
Electronic Payments Required: After September 30, 2025, federal payments will be made via direct deposit or other electronic funds transfer (EFT) methods. This includes tax refunds, government benefits, and vendor payments.
Action Needed: If you currently receive federal payments by paper check, you will need to provide your banking information to the relevant federal agency to ensure uninterrupted payments. Failure to do so may result in delays.
Exceptions: Exceptions will be available only in limited circumstances, such as for individuals who cannot access electronic payment systems. The Treasury is developing procedures for requesting exceptions and may offer alternative payment options, such as prepaid debit cards, where appropriate.
Unbanked and Underbanked Populations: The Treasury is seeking to address the needs of individuals without traditional bank accounts. If you or someone you know is unbanked or underbanked, please contact us for guidance on available options.
Next Steps
- Review Your Current Payment and Receipt Methods
If you receive any federal payments, or pay taxes due, by check, you must prepare to transition to electronic payments. - Update Your Banking Information
Ensure your banking details are current with the IRS, Social Security Administration, or any other relevant agency. - Monitor for Further Guidance
The Treasury will issue additional instructions and public awareness materials in the coming weeks. We will keep you informed of any updates or new requirements. - Contact Us for Assistance
If you have questions about how this change may affect you, or if you need help updating your payment information, please reach out to our office.
Key Date to Remember: September 30, 2025
This is the last day federal paper checks will be issued or accepted, except in limited cases.
We recommend acting promptly to avoid any disruption in receiving federal payments. Our team is available to assist you with this transition and to answer any questions you may have. Contact us to discuss your questions.