EFTPS (Electronic Federal Tax Payment System)

Mandatory Electronic IRS Payments: What’s Changing—and How to Prepare

Why the IRS Is Moving to Electronic Payments

The IRS is making a major shift to electronic payments. Starting September 30, 2025, paper refund checks for individual taxpayers will start phasing out. While you can still use current payment methods—including EFTPS, IRS Direct Pay, and checks—switching to electronic payments now is a smart move. Doing so ensures your payments and refunds are processed quickly and securely.

For official details, check the IRS news release and Executive Order 14247.

What’s Changing—and When

1. Refunds Go Digital First (Sept 30, 2025)
Paper refund checks will be replaced by direct deposit or other secure electronic methods, with only a few legal exceptions. Guidance for 2025 returns will be available before the 2026 filing season.

2. Incoming Payments Transition Later
The March 25, 2025 Executive Order instructs federal agencies, including the IRS, to move all disbursements and receipts to electronic methods “to the extent permitted by law.” The IRS has stated that taxpayers should continue using existing payment options for now, but it’s wise to start planning for electronic payments today.

How to Pay the IRS Electronically

Here are your main options for paying the IRS online:

  1. EFTPS (Electronic Federal Tax Payment System): Perfect for businesses, trusts, estates, and frequent payers. You can schedule, track, and manage your payments. (Enrollment may take a few days, so set it up early.)
  2. IRS Direct Pay: Fast and free for individuals. Pay directly from your checking or savings account—no account login required.
  3. Electronic Funds Withdrawal (EFW): Authorize a direct debit when e-filing your tax return or extension.
  4. Other IRS Payment Options: Credit/debit cards and certain digital wallets are available via IRS-approved processors (processing fees may apply).

Paper Checks—What You Need to Know

For now, paper checks are still valid, but they won’t be forever. Expect a full shift to electronic payments in the coming years. If you’re still relying on checks, it’s best to start moving to electronic methods now to avoid surprises. Check out IRS payment options for more information.

Accessibility and Exceptions

The IRS understands that not everyone has a bank account. Limited alternatives like prepaid debit cards or digital wallets are available. You can also use resources like FDIC GetBanked to find low- or no-cost banking solutions. The Taxpayer Advocate Service encourages the IRS to protect vulnerable taxpayers during this transition.

Action Checklist: Get Ready Now

  1. Set up EFTPS if you’re a business, trust, estate, or frequent payer.
  2. Use IRS Direct Pay for one-off individual payments.
  3. Add direct deposit details to your return for faster refunds.
  4. Verify and update your bank information today—don’t wait until filing season.
  5. Keep an eye out for IRS guidance on when electronic payments will become mandatory.

Safety First: Watch for Phishing : Electronic payments are secure, but be careful of scams. The IRS will never contact you via email or text asking for payment information. Report any suspicious messages to phishing@irs.gov and see how to report tax scams.

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