Dear Client:
Executive Order 14247 (Modernizing Payments To and From America’s Bank Account) mandates that all payments to and from the federal government MUST BE ELECTRONIC effective September 30, 2025. This includes tax refunds and tax payments including estimates and fines. Paper checks or money orders will no longer be accepted.
There are very few exceptions including individuals without bank accounts, emergency hardship payments, law enforcement actions and other circumstances as defined by the Secretary of the Treasury.
What does this mean for you:
- All Filing and Payments on or after September 30, 2025 must be electronic. This includes estimated tax payments that have been previously prepared for you. Payments may be submitted using one of the following methods:
- IRS Direct Pay (from checking or savings account)
- Set up online account with the IRS for individuals
- Set up online account with the IRS for businesses
- Electronic Funds Withdrawal (when e-filing)
- Refunds will only be issued electronically. Paper checks will not be issued. You must have a U.S. bank account on file for direct deposit.
- Tax returns or payments submitted without electronic payment or direct deposit information may be delayed or rejected by the IRS and subject to penalties.
To prepare for this transition:
- You may want to set up an IRS online account. This will allow you to access tax records, make and view payments, view or create payment plans, and view your balance. (See link under “set up online account” on page 1.)
- Your 3rd and 4th quarter 2025 estimated payments must be submitted electronically.
- Ensure that the routing and account numbers for your bank account(s) are up to date. If you have changed banks in 2025, please notify us before your next tax filing. Please verify bank account information in your 2025 Tax Organizer.
- Please be careful that bank accounts are for the correct entity, i.e. individual, business or trusts. Do not mix accounts for different entities.
We will continue to monitor information from the IRS and will provide updates as they become available.
Please call our office with any questions or if you need help preparing for this transition.
Sincerely.
Laurie B. Price, CPA, CGMA, President
