Paper Checks Are Ending – What You Need to Know

Eric-Challenger

Eric Challenger

CPA | Tax Manager

As we highlighted in a previous blog, beginning September 30, 2025, the U.S. Treasury will stop issuing paper checks for most federal payments, including Social Security, Veterans Affairs benefits, and federal tax refunds. Instead, payments will be made electronically, usually by direct deposit into your bank account.

Why is This Happening?

This change stems from Executive Order no. 14247, “Modernizing Payments to and From America’s Bank Account,” signed by President Trump in July, 2025. The government explained that the move is designed to reduce fraud, prevent lost or stolen checks, and deliver funds faster.

If you already receive payments electronically, no action is needed. However, if you still receive paper checks, you must switch to direct deposit before the deadline.

How to Switch to Direct Deposit

Here are 6 ways to enroll in direct deposit:

  1. Contact the federal agency that issues your payments to determine how to enroll in direct deposit.
  2. Sign up online at GoDirect.gov.
  3. Call the Electronic Payment Solution Center at 800-967-6857 (Mon–Fri, 9 a.m.–7 p.m. ET).
  4. Use the Electronic Federal Tax Payment System (EFTPS).
  5. Provide your CPA with your banking details for tax refund direct deposit.
  6. Choose a Treasury-approved prepaid debit card.

You can read the Treasury’s full announcement here.

Most taxpayers already use electronic payment methods, but if you haven’t transitioned, now is the time to act.

Looking Ahead

This change is part of a larger plan. In the future, the government will also require payments to the federal government, like income taxes, to be made electronically. For now, paper checks for payments such as the September 15, 2025, estimated tax payment are still accepted, however, expect changes in the near future.

At CK, we recommend using electronic methods whenever possible for both filings and payments. Benefits include:

If you’re not sure how to make the switch, reach out to your CK team for help with transitioning your tax payments, refunds, and estimates to secure electronic systems.

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