Alert: Executive Order to Phase Out Paper Checks

On March 25, 2025, President Trump signed an Executive Order on Modernizing Payments to and from America’s Bank Accounts, which will phase out paper check disbursements and receipts as of September 30, 2025. This change is intended to modernize payment methods and streamline transactions between taxpayers, businesses, and the federal government.

Who Is Affected?

This shift will impact taxpayers who currently receive refunds or make payments using paper checks. Moving exclusively to electronic methods will change how many individuals and businesses handle routine tax transactions, requiring updated processes for both receiving funds and remitting payments. Specifically, it will impact:

• Individuals who are accustomed to receiving tax refunds by paper check,
• Taxpayers who use paper checks for balance due payments, and
• Businesses or practitioners that have historically relied on paper-based transactions for federal tax obligations.

What Alternatives Are Available?

As paper checks are phased out, taxpayers and advisors should begin preparing for a transition to electronic methods if they are not using them already. Available options include:

• Direct Debit/Deposit Using IRS Approved Tax Software – This method, which CRI already offers to our tax clients, allows for seamless electronic payments and refund deposits.
• Web Pay – This option, which some CRI clients currently employ, enables taxpayers to make their own secure online payments directly.
  • IRS offers different options for business and individuals. Learn more about IRS payment options here.
  • Each state taxing authority makes its own rules for income tax payments and refund options. Your CRI Professionals can provide guidance about state taxes.

As we await IRS guidance for tax software updates for Tax Year 2024, these options can already be implemented on a case-by-case basis to ensure taxpayers are prepared for the September 30 deadline.

What Should You Do Now?

Taxpayers and advisors who rely on paper checks for tax payments and refunds should begin making arrangements for electronic alternatives ahead of the September 30, 2025, cutoff. Doing so now will minimize potential disruption and ensure a smooth transition once paper checks are no longer available.

Your CRI Professional Is Ready to Help

Adjusting to the phase-out of paper checks and implementing new payment methods may create challenges for both individuals and businesses. It’s natural to have questions about what this transition means and how to adapt current practices. Contact your CRI advisor today to discuss how this Executive Order may affect you and the steps you can take to be ready. Our team is here to help you evaluate options and update processes to secure a smooth transition.