Say Goodbye to Paper Checks
New IRS & Government Payment Rules Coming Soon!
In March 2025, President Trump signed an Executive Order called “Modernizing Payments To and From America’s Bank Account.” The goal? Move government payments away from paper checks and over to electronic payment methods.
Why the change? Quite simply—to cut down on fraud and mail theft. Paper checks have long been a target, and the government believes going digital will make payments faster, safer, and more reliable.
What’s Changing—and When
The new mandate kicks in on September 30, 2025. Here’s what it covers:
Payments from the Federal Government:
Income tax refunds
Social Security payments
Office of Personnel Management (OPM) payments
Payments to the Federal Government:
Income tax payments
Fees, penalties, fines
Loan and installment payments
Are There Exceptions?
Yes—but only in limited cases. If someone doesn’t have access to electronic banking, they may qualify for an exception. That said, it won’t be automatic. We don’t know yet “how” taxpayers will go about opting out, but it will likely involve a written request via a new IRS tax form where the taxpayer will certify their reason for opting out.
What’s Next?
The Federal Government plans to roll out a public awareness campaign to prepare everyone for the switch. In the meantime, it’s a good idea to double-check your direct deposit information, online banking access, and make sure you’re set up for electronic payments.
