Paper Tax Checks Are Ending: How New IRS Electronic Payment Rules Affect You

We want to inform you of an important change that may impact how your tax payments and refunds are handled. On March 25, 2025, President Trump issued Executive Order 14247, requiring that all payments to and from the U.S. Treasury must be made electronically through the IRS Electronic Federal Tax Payment System (EFTPS), which will be implemented starting with the 2025 tax returns.

What This Means for You:

• No More Paper Checks: The IRS will stop issuing or accepting paper checks for tax payments or refunds. Any tax refund you receive from the IRS will be sent via ACH direct deposit to your designated bank account.
• Electronic Payments Required: All tax payments (including estimated income tax payments) must be submitted online via EFTPS, IRS.gov, or ACH transfer through approved tax software.
• Bank Information Needed: We are now required to collect bank routing and account numbers for all clients who file tax returns with us and either have tax refunds or will have an income tax payment paid electronically with their tax return.
• Limited Exceptions: Exceptions are available only in rare cases (e.g., no banking access, emergency hardship) and require documentation and formal approval.

What taxpayers can expect if their 2025 tax return does not include direct deposit information

Individual income tax returns that do not include their bank information for direct deposit will be accepted and processed, but taxpayers should understand that their refunds will be delayed. After filing, the IRS will send taxpayers a letter asking them to provide or update their banking information within 30 days if their return fails to include the information or if the direct deposit has been rejected by their bank. The letter will provide information on exceptions and provide a phone line taxpayers may call to request an exception and issuance of a paper check. After six weeks, the IRS will issue a paper check to taxpayers to prevent interest from accruing on the refund amount.

Paying a Tax Bill Electronically

There are multiple ways a taxpayer can pay their taxes electronically, including:

• IRS Direct Pay: Taxpayer can pay at the time they submit their return or schedule payments up to a year in advance. You can do this either via a bank account, credit or debit card, or digital wallet.
• With the tax return: We can set up your tax payments within our tax software (both estimated tax payments as well as tax due) to be withdrawn from your bank account when we file your tax return. Once these payments are set up, we cannot change them. In the event you want to cancel or change a payment, you would need to contact the IRS and/or the Wisconsin Department of Revenue.
• Online account: Taxpayers who have an online account with the IRS can make these payments through this account for amounts owed, estimated tax payments, extension to file payment, etc.

We will be updating our processes to align with these new federal requirements and are here to help you through the transition. Please reach out if you have any questions, or if you need assistance with setting up your electronic payments.