The U.S. Treasury recently announced an important change: beginning September 30, 2025, the federal government will no longer issue or accept paper checks for payments. This update comes under Executive Order 14247, Modernizing Payments To and From America’s Bank Account. The reason is simple—paper checks are slow, costly, and vulnerable to fraud. In fact, Treasury has found that checks are more than 16 times more likely to be lost, stolen, or altered compared to electronic payments. In 2024 alone, taxpayers bore more than $650 million in costs just to keep the paper system running. Moving everything to digital payments means faster processing, fewer mistakes, and lower costs for everyone.
While this shift may feel like the end of an era, it’s also a positive step forward. Paper checks for Social Security, tax refunds, vendor payments, and other federal transactions will no longer be an option. Instead, everything will flow through electronic payments like direct deposit, ACH, prepaid cards, or other approved methods. This isn’t optional—it’s mandatory—unless an exception applies, electronic payments are now the rule.
What About Estimated Tax Payments?
One of the biggest areas impacted for individuals and business owners is the payment of quarterly estimated taxes. Many taxpayers still mail checks along with Form 1040-ES, but starting with the September 30, 2025 deadline, those payments must be made electronically. The IRS already provides several secure options, including IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), and debit/credit card payments online. While this change may require adjustments for some, electronic payments reduce mailing delays, ensure timely crediting of payments, and help avoid penalties caused by lost or misapplied checks.
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The last estimated tax due date before the mandate is September 15, 2025 (3rd quarter 2025). You can still mail a paper check for that one if you choose.
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The next due date, January 15, 2026 (4th quarter 2025 estimated payment), will require an electronic payment. Paper checks will no longer be accepted after September 30, 2025.
- For instructions on making electronic payments, see IRS Tax Payments: Estimates & Extensions – True Wealth Design.
At True Wealth, we view this modernization as consistent with how we’ve preferred to work with clients for years. Just as the federal government is modernizing its payment systems to reduce risks and inefficiencies, we have always aimed to do the same while providing sound advice and a great client experience. By embracing secure, electronic processes, we not only streamline your financial life but also protect you and us from unnecessary costs, delays, and risks associated with outdated paper-based systems.
