As always, we are committed to keeping you informed and helping you navigate changes that may affect your financial life. We want to share an important reminder regarding how payments to and from the IRS are being handled—and what it means for you.

What’s Changing?

Last year, the Federal Government announced that, effective September 30, 2025, it would begin phasing out paper checks for federal payments and disbursements. This includes:



• Tax refunds
• Social Security benefits
• Federal tax payments

While this mandate has not yet been strictly enforced and some exceptions remain, all federal agencies—including the IRS—are moving toward fully electronic payment systems. In the near future, paper checks will no longer be accepted or issued in most cases.

Why This Matters

Electronic Fund Transfer (EFT) methods—such as direct deposit, prepaid debit cards, and other digital payment options—offer several advantages:

• Faster processing times
• Improved accuracy
• Reduced risk of lost or stolen checks
• Greater convenience and security

For these reasons, the IRS strongly encourages all taxpayers to transition to electronic payment methods as soon as possible.

What You Should Do Now

If you are not currently making or receiving federal payments electronically, we recommend that you:

1. Set up direct deposit with your financial institution
2. Ensure your banking information is up to date
3. Provide electronic payment details when filing future tax returns

Taking these steps now will help avoid delays and ensure a smoother experience going forward.

Important Notice: CP53E Letters

If you filed your 2025 tax return without providing electronic payment information, you will likely receive a CP53E Notice from the IRS by mail. This notice requests that you submit your direct deposit information within 30 days via a secure, online account so your refund can be processed. Upon successful completion, your information will be updated within 2 to 5 days. If you do not respond to the notice, a paper check will be issued after 6 weeks; however, we encourage all clients to update/add direct deposit information with the IRS to comply with the mandate and prevent future delays with payments to and from the IRS.

Stay Alert: Protect Yourself from Scams

It’s very important to verify that any communication you receive is legitimate before sharing sensitive information. Please keep the following in mind:



• The IRS will not contact you via phone, email, text message, or social media to request personal or financial information
• Official IRS notices are sent by mail
• Always ensure you are using a secure and legitimate IRS website before submitting any information

For more details, you can review the IRS guidance here: https://www.irs.gov/individuals/understanding-your-cp53e-notice

If you ever feel unsure about a notice or communication you’ve received, do not respond immediately. Instead, contact our office and we will help you verify its authenticity.

We’re Here to Help

Our goal is to make these transitions as smooth as possible for you. If you have questions about setting up electronic payments, updating your information, or verifying a notice you’ve received, please call us at (781) 551-0040.