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IRS Update: Transition Toward Electronic Payments and Refunds

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The IRS is implementing federal changes, Modernizing Payments to and From America’s Bank Account that will gradually shift tax payments and refunds away from paper checks and toward faster, more secure electronic methods.
 
Key Changes to Know:
?? Paper refund checks will be phased out.
After 9/30/25, the IRS will increasingly issue refunds electronically, such as direct deposit, instead of paper checks when permitted by law. This applies to both individuals and businesses.
?? Electronic tax payments are becoming the standard
Paper checks are still accepted at this time, but the IRS continues expanding electronic payment options, including:
• IRS Direct Pay
• Electronic Federal Tax Payment System (EFTPS)
• Debit or credit card payments
• Digital wallets
• IRS2Go mobile app

Recommended Next Steps:
? Review your current payment processes to ensure your business is set up to use electronic payment tools such as IRS Direct Pay or EFTPS.
? Confirm your banking details to avoid delays in refunds or payment processing.
? Consult with your tax advisor to ensure your systems and workflows are aligned with upcoming requirements.
This transition reflects a broader federal effort to improve security, efficiency, and reliability in how payments are issued and received. If you have questions about how these changes may impact your business or would like assistance setting up electronic payment options, our team is here to help.

IRS Update: Transition Toward Electronic Payments and Refunds