Article | by Geffen Mesher

While direct deposit or electronic transfer of refunds and tax payments have been around for some time, some taxpayers have continued to opt for receiving their refunds via paper checks and/or using paper checks to pay their taxes. These options will no longer be available due to an Executive Order signed by the President on March 25, 2025.

The first change will be for refunds.

Starting on September 30th, 2025, the U.S. Treasury will cease issuing most paper checks for federal disbursements, including federal tax refunds. This change affects all taxpayers who receive federal refunds.

Limited exceptions may be granted by the Secretary of the Treasury in cases of a documented undue hardship, such as a lack of access to banking services or a national security issue. There is no publicly available form to file for an exemption.

How you can prepare for this change:

• Set up direct deposit for your tax refund.
• Use approved electronic payment (see bullet points below)
• Update your IRS account

The second change affects the payment of taxes.

The Executive Order directed the U.S. Treasury to switch to only accepting electronic payments “As soon as practicable.” The IRS issued a press release on September 23, 2025, clarifying this change somewhat. It states that: “Taxpayers should continue to use existing payment options until further notice. Additional guidance and information for filing 2025 taxes will be issued prior to the 2026 filing season.” Existing payment options include several methods of electronic payment and paper checks. So, we can continue to send in tax payments by check for now, but this will likely NOT be an option next year (in 2026). EFT payments can be made in a variety of ways.

How you can prepare for this change:

Consider using one of the approved electronic payment methods. These include:

• IRS Direct Pay https://www.irs.gov/payments/direct-pay-with-bank-account
• IRS Online Account https://www.irs.gov/payments/online-account-for-individuals
• Debit card, credit card, or digital wallet (fees may apply) https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card
• Electronic Funds Withdrawal through tax preparation software or a tax professional when E-filing a return.
  NOTE: This method allows the IRS to withdraw the funds directly from your bank account.
• Electronic Federal Tax Payment System (EFTPS) https://www.irs.gov/payments/eftps-the-electronic-federal-tax-payment-system
  NOTE: This method is primarily used by businesses. Individuals will not be able to enroll in this system after October 17, 2025. All individuals will need to choose a different payment method in 2026, as the IRS will be phasing out this method.

Stay Alert For Scams
During times of change there can be an uptick in phishing scams. Scammers may try to take advantage of the potential fear that can arise from misunderstandings. The IRS explains what to look out for here: https://www.irs.gov/privacy-disclosure/report-phishing.

Questions?
If you have additional questions on this or any tax topic, please reach out to our tax professionals.

About Geffen Mesher:
Geffen Mesher, a Portland-based accounting firm, focuses on providing ongoing financial strategy, accounting and tax advisory services for businesses and individuals. We serve numerous industries and create solutions that help our diverse clientele plan and build their financial futures wisely. Learn more at gmco.com and contact info@gmco.com