Mandatory Electronic IRS Payments: What You Need to Know and How to Prepare
19 Nov 2025
Mandatory Electronic IRS Payments: What You Need to Know and How to Prepare
Introduction
The IRS is modernizing the way taxpayers make and receive payments. Beginning September 30, 2025, paper refund checks will be largely discontinued. This change affects both individuals and businesses, making it essential to understand how to pay taxes online and set up direct deposit refunds.
Electronic payments ensure faster processing, safer transactions, and easier tracking. Preparing now will save you stress and prevent delays when paper checks are no longer accepted.
Why the IRS Is Moving to Digital Payments
The IRS is shifting to electronic payments to reduce delays, enhance security, and improve efficiency. Digital payments benefit taxpayers by:
- Delivering refunds more quickly
- Reducing the risk of lost or delayed payments
- Simplifying record-keeping
Businesses and frequent filers can use EFTPS to schedule and track payments, while individuals can rely on IRS Direct Pay for simple, one-time payments.
Key Changes Coming in 2025
1. Digital Refunds Take Priority : Starting September 30, 2025, most refund checks will be issued electronically. Direct deposit will become the standard, with only a few exceptions.
2. All Payments Transition Gradually : Federal agencies, including the IRS, are required to switch incoming payments to electronic methods wherever legally allowed. Traditional options will remain temporarily, but preparing now is strongly recommended.
How to Make IRS Payments Electronically
Here are the main ways to stay compliant and efficient:
1. EFTPS (Electronic Federal Tax Payment System) : Designed for businesses, trusts, estates, and regular taxpayers. It allows scheduling payments in advance and tracking them securely. Early enrollment is recommended.
2. IRS Direct Pay : Ideal for individuals. Pay directly from a bank account without creating a login. Fast, free, and convenient.
3. Electronic Funds Withdrawal (EFW) : Allows taxpayers to authorize payments directly from their bank account when e-filing a return or filing an extension.
4. Other Digital Methods : Some credit/debit cards and approved digital wallets are accepted through authorized processors. Processing fees may apply, but they offer extra flexibility.
Preparing for the Transition
Even though paper checks are still accepted for now, moving to digital payments is smarter. Steps to prepare:
- Set up EFTPS if you handle multiple or frequent payments
- Use IRS Direct Pay for one-off payments
- Add direct deposit information for faster refunds
- Verify your bank details ahead of tax season
- Stay updated with IRS announcements about mandatory electronic payments
Accessibility and Exceptions
Not everyone has a traditional bank account. Alternative options include prepaid debit cards or digital wallets. Programs like the FDIC GetBanked initiative can help find affordable banking solutions.
Security Tips
Digital payments are secure, but phishing scams exist. The IRS will never email or text asking for payment information. Report suspicious messages to phishing@irs.gov and stay vigilant against scams.
FAQs: Required Electronic IRS Payments
1. What are IRS electronic payments?
Digital methods for sending tax payments directly to the IRS, including EFTPS, IRS Direct Pay, and Electronic Funds Withdrawal.
2. When will paper refund checks be phased out?
Most paper refund checks will be phased out starting September 30, 2025.
3. How can I pay my taxes online?
Use IRS Direct Pay, EFTPS, or approved credit/debit cards and digital wallets. Each method is secure and convenient.
4. Can businesses use the same methods as individuals?
Businesses, trusts, and estates should primarily use EFTPS. Individuals generally use IRS Direct Pay for single payments.
5. What if I don’t have a bank account?
Use prepaid debit cards or digital wallets. The FDIC’s GetBanked program can help find low-cost banking solutions.
6. How can I stay safe from IRS scams?
The IRS never requests payment information via email or text. Verify communications and report suspicious messages to phishing@irs.gov.
Conclusion
The transition to IRS electronic payments is a major change, but early preparation ensures you’ll be ready. Whether you’re an individual or business, setting up digital payment methods now guarantees faster, safer, and smoother transactions.
Switch to electronic payments today, safeguard your financial information, and stay ahead of IRS deadlines.