If you still mail paper checks to the IRS, that option is going away. Under Executive Order 14247, signed in February 2025, the federal government is moving to fully electronic payments. The IRS will stop accepting paper checks and money orders for federal tax payments after September 30, 2025.
This isn't a proposal or a maybe. It's happening. And it affects every business owner who makes federal tax payments, including estimated quarterly taxes, payroll deposits, and annual returns.
The good news: the electronic options are straightforward, most of them are free, and you have time to set them up before the deadline hits. Here's what you need to know and exactly what to do.
TL;DR: The IRS stops accepting paper checks for all federal tax payments after September 30, 2025, per Executive Order 14247. You need to switch to an electronic method like IRS Direct Pay (free, no registration) or EFTPS (free, requires enrollment). Both work for estimated taxes, payroll, and annual payments. Set up now so you're not scrambling in September.
What exactly is changing with IRS tax payments?
Executive Order 14247 directs all federal agencies to stop accepting paper-based payments. For the IRS, that means no more paper checks, money orders, or cashier's checks for any federal tax payment after September 30, 2025. The U.S. Treasury has been pushing electronic payments for years, and this order makes it mandatory.
This applies to everything: estimated quarterly taxes, balance due on your annual return, payroll tax deposits, and any other federal tax obligation. If you currently write a check and mail it with a voucher, that process is done.
The order is part of a broader government efficiency push. According to the Government Accountability Office, processing a paper check costs the federal government between $3.50 and $7.50 per transaction, compared to pennies for electronic payments. The shift was coming eventually. This order just put a firm date on it.
Who is affected by this change?
Every individual and business that makes federal tax payments by paper check. That's a significant number of taxpayers. According to IRS data, approximately 8.5 million paper checks were still received for tax payments in fiscal year 2023. If you're one of those filers, you need a new method before October 2025.
Small business owners are particularly impacted because many still use paper checks for quarterly estimated taxes. If you're self-employed, run an LLC, or operate an S-Corp, you likely make four estimated payments per year plus any balance due at filing. That's five or more payment events annually that need to shift to electronic.
Payroll tax deposits are already required electronically for most employers through EFTPS. But if you've been mailing checks for income tax obligations, those need to move too.
What are the electronic payment options?
You have five main options. All are legitimate, IRS-approved methods. Here's how they compare.
IRS Direct Pay
Free. No registration required. You go to irs.gov/directpay, verify your identity, enter your bank information, and submit the payment. It pulls directly from your checking or savings account. You can schedule payments up to 365 days in advance.
Best for: business owners who want the simplest option with no setup process.
EFTPS (Electronic Federal Tax Payment System)
Free. Requires enrollment, which takes about a week because the IRS mails you a PIN. Once enrolled, you can schedule payments, view payment history, and set up recurring payments. The IRS reports that EFTPS processes over 1.5 billion payments annually.
Best for: business owners who make multiple tax payments throughout the year and want a centralized dashboard.
Direct debit with e-file
Free. When you e-file your return through tax software or your CPA, you can authorize a direct debit from your bank account for any balance due. The payment pulls automatically on the date you specify.
Best for: annual return payments when you're already filing electronically.
Credit or debit card
Not free. The IRS authorizes three payment processors, and each charges a fee. Credit card fees typically run 1.85% to 1.98% of the payment amount. Debit card fees are flat, usually $2.20 to $2.50 per transaction. You can pay through irs.gov/payments or by phone.
Best for: situations where you need to pay immediately and want to earn credit card rewards. Do the math on fees versus rewards first.
Digital wallets
PayPal, Click to Pay, and other approved digital wallets can be used through the IRS-authorized payment processors. Fees apply, similar to credit card payments.
Best for: people who already use digital wallets and prefer that interface.
How do you set up EFTPS?
EFTPS is the most robust option for business owners, especially if you make quarterly estimated payments. Here's the step-by-step process.
Step 1: Go to eftps.gov and click "Enrollment." Choose "Business" enrollment. You'll need your EIN (Employer Identification Number), business name and address exactly as they appear on your tax returns, and a bank account and routing number.
Step 2: Complete the online enrollment form. Double-check that your EIN and business name match your IRS records exactly. Mismatches will delay enrollment.
Step 3: Wait for your PIN. The IRS mails a 4-digit PIN to the business address on file. This typically takes 5 to 7 business days. You cannot skip this step. There is no expedited option.
Step 4: Activate your enrollment. Once you receive your PIN, go back to eftps.gov and log in with your EIN, PIN, and a password you'll create. You can also set up an Internet Password at this point.
Step 5: Make a test payment. Before your first real deadline, make a small estimated tax payment to confirm everything works. You can schedule payments up to 365 days out, and you'll get a confirmation number for every transaction.
The enrollment process is the only friction point. Once you're in, making payments takes about two minutes. Start now so you have your PIN well before September.
How do you use IRS Direct Pay?
If you want something simpler with no enrollment, IRS Direct Pay is your fastest path.
Step 1: Go to irs.gov/directpay. Click "Make a Payment."
Step 2: Select the payment type. Choose the tax form (1040 for income tax, 1040-ES for estimated payments) and the tax period.
Step 3: Verify your identity. The IRS will ask for your name, SSN or ITIN, date of birth, filing status, and address. This must match your most recent tax return exactly.
Step 4: Enter your bank information. Routing number and account number from your checking or savings account.
Step 5: Review and submit. You'll get a confirmation number. Save it. You can schedule the payment for a future date or pay immediately.
The downside compared to EFTPS: Direct Pay doesn't save your information between sessions. You'll re-enter your bank details each time. For quarterly payments, that's four times a year. Not a dealbreaker, but EFTPS is more convenient for repeat payers.
What about estimated quarterly taxes?
If you make quarterly estimated payments (Form 1040-ES), this change hits you four times a year. The IRS estimates that over 10 million individuals and businesses make quarterly estimated payments annually.
Your estimated tax due dates don't change:
- Q1: April 15
- Q2: June 15
- Q3: September 15
- Q4: January 15 (of the following year)
After September 30, 2025, the September and January payments can no longer be mailed as paper checks. But honestly, it makes sense to switch all four payments to electronic now. Pick one method and use it consistently.
With EFTPS, you can schedule all four payments at the beginning of the year. Set it and forget it. With IRS Direct Pay, you'll make each payment individually, but you can schedule up to 365 days ahead.
Are electronic payments secure?
Yes. Both EFTPS and IRS Direct Pay use bank-level encryption and multi-factor authentication. The IRS has been processing electronic payments for over two decades. According to the IRS, EFTPS alone handles more than $4 trillion in payments annually.
A few common concerns and straight answers:
"What if I enter the wrong amount?" With IRS Direct Pay, you can modify or cancel a payment up to two business days before the scheduled date. EFTPS allows cancellations up to two business days before the settlement date. Mistakes are fixable.
"What if someone hacks my account?" EFTPS requires your EIN, a PIN mailed to your physical address, and a password. That's three factors. IRS Direct Pay verifies identity against your tax return data. Neither system stores your bank information in a way that's accessible to third parties.
"Will the IRS charge fees for electronic payments?" IRS Direct Pay and EFTPS are completely free. No processing fees, no convenience fees. Credit and debit card payments through third-party processors do carry fees, but those are charged by the processor, not the IRS.
How can a bookkeeper help with this transition?
If you work with a bookkeeper, this is a good time to loop them in. A bookkeeper can set up your EFTPS enrollment using your business information, ensure estimated tax payments are tracked correctly in your books, schedule payments to align with your cash flow, and keep records of confirmation numbers for every payment.
The payment itself still needs your authorization. But the setup, scheduling, and record-keeping are exactly the kind of administrative work a bookkeeper handles. If you've been managing your own estimated taxes by writing checks four times a year, switching to electronic payments is also a natural point to hand that tracking off to someone who does it professionally.
If you're looking for help with the transition or with your books in general, we offer a free 15-minute discovery call to see if there's a fit.
Frequently asked questions
Can I still pay the IRS by check before September 30, 2025?
Yes. Paper checks are accepted until September 30, 2025. After that date, paper payments will not be processed. The IRS recommends switching to electronic payments as soon as possible to avoid any disruption. Don't wait until September to figure out your new process.
Is EFTPS the same as direct debit when I e-file?
No. EFTPS is a standalone payment system you enroll in and use year-round for any federal tax payment. Direct debit is a one-time authorization you set up when e-filing a specific return. EFTPS gives you more control and a payment history dashboard. Direct debit is simpler but only works at filing time.
What if I don't have a bank account?
You can still pay by credit card, debit card, or digital wallet through IRS-authorized processors at irs.gov/payments. Fees apply for card and wallet payments, but they remain an option for taxpayers without bank accounts.
Do state tax payments change too?
Executive Order 14247 only applies to federal payments. State tax agencies set their own rules. Check with your state's department of revenue for their specific requirements. Many states already require or strongly encourage electronic payments, but deadlines and rules vary.
What happens if I accidentally mail a paper check after September 30?
The IRS has not published specific guidance on this scenario yet. It's reasonable to expect that paper checks received after the deadline would be returned, potentially causing a late payment situation. Don't risk it. Set up an electronic method before the deadline and confirm it works with a test payment.