The end of paper checks is coming soon.
If you currently pay your federal taxes or get your income tax refunds via physical check, take note, change is coming. President Trump signed Executive Order 14247 on March 25, 2025, which mandates the U.S. government stop issuing and accepting paper checks for all federal payments and disbursements, including tax refunds and payments as well as social security benefits, by September 30, 2025. After September 30, all payments received and made will be made electronically.
Why the shift?
According to a fact sheet issued by the White House, the switch to digital is expected to be more cost-effective, faster, and more secure, as paper checks can be delayed, lost, or stolen. As thieves grow more sophisticated, they have resorted to techniques such as chemical washing, which allows them to alter the name and the amount before cashing them fraudulently. Electronic payments can help reduce these risks and offer better protection for recipients.
Steps to take now
If you still send or receive physical checks for your tax payments, refunds or social security payments you must take the following steps to comply with the new rules:
- Set Up Direct Deposit
- If you expect a refund, you must provide your bank account and routing numbers on your tax return
- Choose an Electronic Payment Method
- Taxpayers may submit payments using:
- IRS Direct Pay (linked to your bank account)
- The Electronic Federal Tax Payment System (EFTPS)
- Debit card, credit card, or digital wallet options approved by the IRS
- Taxpayers may submit payments using:
- Update Your IRS Account
- Log in to your online IRS account to confirm or add payment and refund preferences
- Act Before the Deadline
- To avoid delays in processing, taxpayers must update their information and use electronic methods before September 25th
What happens if you don’t have a bank account?
The executive order allows for “limited exceptions” for individuals without access to banking or electronic payments, though details on how this will be handled are still unclear. However, since the percentage of individuals without a traditional checking or savings account continues to drop, the order is not expected to affect most people.
Need Assistance?
Taxpayers can visit www.irs.gov/payments or call 1-800-829-1040 for guidance on setting up electronic payments or direct deposit. Assistance is also available at local IRS Taxpayer Assistance Centers.
If you would like to learn more about this change, please reach out to your Crestwood team. If you are not yet working with Crestwood, please contact us to discuss your individual circumstances.
This document is provided for general informational purposes only by Crestwood Advisors, an investment adviser. Crestwood Advisors does not provide legal advice, and this document should not be construed as containing legal advice. For legal advice, consult with a licensed attorney. This document should not be construed as containing tax advice. For tax advice, consult with your tax adviser.
