No More Government Checks
With the “Modernizing Payments To and From America’s Bank Account” executive order that was signed on Friday, March 25, 2025, the federal government will be phasing out the use of paper checks and switching to electronic payments by September 30, 2025.
The new rules impact checks issued and received by all federal government departments. The primary changes for you will be tax refunds, VA payments and Social Security benefits as well as payments made to the federal government including a tax payments and tax estimates.
Here is how this executive order may affect you and adjustments you should make:
Social Security - If you (or an older relative) is receiving Social Security payments, those payments will now be transitioned to electronic payment methods. You can elect direct deposit of SS benefits online or by calling a Social Security office.
Tax Refunds - Refunds on returns filed and processed before September 30th will still be mailed if direct deposit is not elected. Refunds on returns filed after that date will be required to elect a direct deposit method. With mail theft on the rise and the speed of the direct deposit refund, we advise all our clients to use the direct deposit method. If you ever wonder about the status of your federal tax refund, you can use the “Where’s My Refund” page at irs.gov.
Tax Estimates - The 2025 federal tax estimates are due on 4/15/25, 6/15/25, 9/15/25 and 1/15/26. The assumption is that you will be able to make the first three by paper check, but any estimate after the 9/30/2025 deadline will need to made electronically via your CPA’s tax software or directly with the IRS Direct Pay system.
As the final IRS regulations and implementation plans are not due until September 21, 2025, we recommend getting ahead of any issues by securing your IRS online account that will allow you to make and track payments securely as well as register for an Identity Protection PIN.