One Big Beautiful Bill Act – IRS Changes (Paper Checks) & (IRS Payments)

CHANGES TO IRS PAPER CHECKS

See IR 2025-94

IRS Refund Payments – Important Change

• The IRS plans to phase out issuing paper refund checks. After September 30, 2025, paper checks may no longer be available.

What the IRS recommends

• Direct Deposit is strongly encouraged.
  • Direct deposit is faster and helps avoid:
    • Lost checks
    • Stolen checks
    • Refunds being returned as undeliverable

Options if you don’t have a bank account

If a client does not have a traditional bank account, these options may help:

• FDIC: Get Banked: see Get Banked
  •  Helps people find safe, low-cost bank accounts.
• GoDirect: Allows federal payments to be deposited onto a prepaid debit card.
• MyCreditUnion.gov: see My Credit Union.gov
  • Helps locate local credit unions that offer low-cost accounts.

CHANGES TO IRS PAYMENTS

IRS Tax Payments – Paper Checks Being Phased Out

The IRS plans to stop accepting paper checks. After September 30, 2025, paying by check may no longer be an option.

• Current situation
  • For now, taxpayers can still mail a check or money order with a payment voucher.
  • However, how long this option will remain available is uncertain.

Alternative Ways to Pay the IRS

• If clients want to avoid mailing a check, these electronic payment options are available:
  1. Electronic Federal Tax Payment System  see EFTPS
     • Used for tax payments and estimated tax payments
     • No additional fee
  2. Electronic Funds Withdrawal (EFW)
     • Allow payment by direct debit through tax software when e-filing
     • No additional fee
  3. Debit Card, Credit Card, or Digital Wallet see  IRS Payment Debit Credit Card
     • Payments made through IRS-approved processors
     • Fees apply
  4. IRS Direct Pay
     • Pay directly from a bank account on the IRS website
     • No additional fee