Beginning September 30, 2025, the U.S. federal government will require nearly all payments to and from federal agencies—including the IRS and Social Security Administration—to be made electronically.
The federal government is modernizing its payment systems to reduce administrative costs, improve security, and eliminate delays associated with paper checks. Electronic payments are faster, safer, and more reliable, offering direct access to funds without waiting for mail delivery or visiting a bank.
Here’s what you need to know—and what steps you should take now to stay in compliance.
What is Changing?
Social Security Payments
The Social Security Administration (SSA) will no longer issue paper checks for monthly benefits. Beneficiaries must switch to one of two electronic options:
- Direct Deposit: Payments go directly into a checking or savings account. OASDI recipients can manage this through their Social Security account.
- Direct Express® Card: A prepaid debit card for those without a bank account. To enroll, visit www.usdirectexpress.com or call 1-800-333-1795.
SSA is actively contacting beneficiaries who still receive paper checks and offering assistance with the transition. If you believe you qualify for an exemption, you must file a waiver with the U.S. Treasury by calling 1-800-967-5042.
IRS Tax Payments and Refunds
The IRS will no longer accept paper checks for tax payments, including estimated taxes. All refunds will be issued electronically. If you’ve been receiving a paper refund check, you’ll need to provide your bank account information or opt into a prepaid debit card.
Electronic payment options include:
- IRS Direct Pay: Free payments from your bank account
- Electronic Federal Tax Payment System (EFTPS): For individuals and businesses
- IRS2Go App: Mobile access to payment options
- Debit/Credit Card or Digital Wallet: Via approved third-party processors (fees may apply)
- Electronic Funds Withdrawal (EFW): Combine e-filing and payment in one step using tax software or a preparer
To avoid disruptions and ensure compliance, we recommend the following steps:
- Update your direct deposit information with SSA and IRS
- Enroll in Direct Express® if you don’t have a bank account
- Talk to your tax preparer about submitting payments and refunds electronically
- Review your estimated tax schedule—the fourth quarter 2025 payment will be the first fully subject to the new rule (this is due October 15, 2025),
- Help family members who may be affected, especially retirees or those without digital access
Are There Any Exceptions?
Yes, but they are limited. The Treasury Secretary may grant exemptions in specific situations, including:
- Individuals without access to banking services
- Emergency circumstances where electronic payments are impractical
- National security or law enforcement needs
If you believe you or someone you support may qualify, contact the U.S. Treasury at 1-800-967-5042 to request a waiver.
McComb & Company Can Help You Navigate These and Other Changes
We’re here to guide you through this transition with clarity and confidence. Contact McComb and Company today to schedule a consultation about your tax payments or to make a tax planning appointment.