Executive Order Mandates Shift to Electronic Tax Payments and Refunds

On March 25, 2025, the President signed an Executive Order requiring the federal government to phase out paper checks for tax refunds and transition to direct deposit or other electronic methods by September 30, 2025. The order also directs that taxpayer payments to the Treasury such as balances due or estimated tax payments be made electronically as soon as practicable and to the extent permitted by law. Paper checks for tax payments and refunds may soon become obsolete, except in limited circumstances where exceptions are granted.

Why this matters:

Paper checks are significantly more vulnerable to fraud, loss, and theft. Historically, Treasury checks are 16 times more likely to be reported lost or stolen compared to electronic transfers.
Maintaining paper-based payment systems cost taxpayers more than $657 million in FY 2024 alone.
The transition is intended to reduce costs, improve efficiency, and enhance security.

Recommended next steps for you:

Stay tuned for additional IRS and Treasury guidance on how exceptions will be handled.
Confirm your bank account information with us securely to ensure a smooth transition.
Begin exploring electronic payment options for making tax payments to the IRS in the near future.

We are here to help you navigate these changes and prepare in advance. Please contact our office at (281) 491-8866 or email your respective tax preparer today if you would like to discuss how this new mandate could affect you. As always, planning ahead helps protect your financial security and ensures compliance with new federal requirements.

GRIFFING & COMPANY, P.C.

(281) 491-8866 Fax (281) 491-8998

info@griffing.com

www.griffing.com