Required Electronic IRS Payments: What You Need to Know Before 2025

Why the IRS Is Moving to Electronic Payments

The IRS is modernizing the way taxpayers handle finances. Starting September 30, 2025, most paper refund checks will be phased out. While traditional methods like paper checks, EFTPS, and IRS Direct Pay remain temporarily, switching to electronic payments now ensures faster, safer, and more easily tracked transactions.

Learning how to pay taxes online now can save time and prevent delays. Enrolling in IRS direct deposit refunds ensures that your money reaches you quickly and securely.

Key Changes and Timeline

1. Digital Refunds Begin – September 30, 2025

Most individual refunds will be delivered via direct deposit or secure electronic methods. Only a few exceptions will remain, with guidance provided before the 2026 filing season.

2. All Payments Transition to Digital

Executive Order 14247 directs federal agencies, including the IRS, to transition all payments and collections to electronic formats wherever legally allowed. While current payment methods are still temporarily valid, preparing for a fully digital system now is recommended.

How to Pay the IRS Electronically

Here’s a quick guide:

1. EFTPS (Electronic Federal Tax Payment System): Best for businesses, trusts, estates, and frequent filers. Allows scheduling, tracking, and managing payments. Enrollment takes a few days, so set it up early.
2. IRS Direct Pay: Ideal for individuals. Fast, free, and no account creation required—pay directly from your bank account.
3. Electronic Funds Withdrawal (EFW): Lets you authorize a direct debit when e-filing a tax return or extension.
4. Other Online Options: Some approved processors accept credit/debit cards or digital wallets. Fees may apply.

Paper Checks Are Still an Option—For Now

Paper checks remain valid for now but will be phased out soon. Switching to electronic payments now avoids complications later. Review all options on the IRS payment page.

Action Steps: Be Ready

1. Businesses, trusts, estates, and frequent filers: set up EFTPS.
2. Individuals: use IRS Direct Pay for one-time payments.
3. Provide direct deposit information on your tax return for faster refunds.
4. Verify and update bank info before tax season.
5. Watch IRS updates regarding mandatory electronic payments.

Stay Safe: Avoid Scams

Electronic payments are secure, but phishing scams exist. The IRS will never email or text asking for payment details. Report suspicious messages to phishing@irs.gov. Always use official IRS websites for payments.

 

Frequently Asked Questions

1. What are IRS electronic tax payments?
   IRS electronic tax payments let you pay federal taxes online through EFTPS, IRS Direct Pay, or Electronic Funds Withdrawal (EFW). They’re faster, safer, and easier to track than paper checks.
2. How can I receive my refund faster?
   Providing direct deposit information on your tax return ensures your refund is deposited quickly and securely.
3. Can I still pay by paper check?
   Yes, but paper checks are being phased out. Switching to electronic payments now is recommended to avoid delays.

Bottom Line: The IRS is moving to a fully digital payment system. By preparing now, using IRS electronic tax payments, and setting up direct deposit refunds, you’ll ensure secure, timely, and hassle-free transactions.