On March 25, 2025, President Trump issued Executive Order 14247, Modernizing Payments To and From America’s Bank Account, which transitions all payments made or received from, paper to electronic, between the federal government and individuals, estates, and trusts. As of Sept. 30, 2025, the federal government will no longer issue or receive paper checks.
What Changes for You?
- Income tax refunds
- No more paper checks will be issued to taxpayers. Refunds will be paid via direct deposit, Direct Express® or an IRS-approved digital wallet.
- Estate & trust fiduciary refunds
- Executor or Trustee must provide a bank account titled exactly in the estate or trust name/EIN; AICPA has asked Treasury to create relief for mismatched names and non-US accounts.
- Paying taxes – balance due and estimates
- Paper checks may be rejected or significantly delayed after 9/30/2025. Use IRS Direct Pay, EFTPS, credit/debit card portals, or future real-time options.
Immediate Action Checklist
- Confirm banking details on file with Barnes Wendling
- Verify your bank’s name, type of account, and routing and account numbers match exactly.
- Barnes Wendling is able to facilitate direct withdrawal for balance due payments.
- Open or validate fiduciary accounts
- Estates/trusts need an account titled in the legal name/EIN of the entity.
- Enroll in EFTPS (Electronic Federal Tax Payment System)
- This is the only payment method currently available to trusts and estates.
- Allows trustees/executors to pay all federal taxes electronically and schedule future-dated debits.
- If you would like assistance in enrolling or would like Barnes Wendling to enroll on your behalf in EFTPS, please contact a member of your engagement team.
- Retain digital acknowledgments
- Save ACH confirmations and EFTPS receipts for seven years.
- Monitor Treasury guidance
- Treasury released a May 30, 2025 Request for Information and final rules are expected to be released later this year. Barnes Wendling is monitoring closely.
Compliance and Risk Considerations
- Delayed refunds
- Failure to supply valid account information may halt the issuance of payments after September 30, 2025.
- Penalties and interest
- If electronic tax payments are not settled by the statutory due date, late-payment interest and penalties apply.
- If your bank does not honor the payment due to incorrect information or insufficient funds, the penalty is generally 2% of the amount due.
- Fraud safeguards
- Electronic methods drastically cut check-alteration and mail-theft risk – Treasury checks were 16 times more likely to be stolen than electronic fund transfers.
- E-file authorization
- In order to avoid any of the issues listed above, it is imperative that you review your return(s) and return the signed Form 8879 to us as soon as possible.
- 4th quarter estimates
- Electronic payment may be mandatory by the time your 4th quarter estimate is due on January 15, 2026.
Additionally, as the IRS continues to report a year-over-year rise in the number of fraudulent federal income-tax returns filed using stolen taxpayer information, we strongly encourage you to enroll in the IRS Identity Protection Personal Identification Number (IP PIN) program. The six-digit IP PIN is issued annually and must be included on every electronically or paper-filed return; without it, the IRS will reject any attempt to file under your Social Security number, effectively blocking identity thieves from submitting a false return. Registration is quick, completed online through IRS.gov, and the extra layer of security it provides can save considerable time, expense, and frustration. The IRS PIN will arrive annually in January and must be provided with your tax documents in order to electronically file your return.
Please note that, for security reasons, the IRS restricts its “Get an IP PIN” application to taxpayers only; third parties—including our firm—are not permitted to obtain, generate, or retrieve an Identity Protection Personal Identification Number on your behalf. Although we are happy to guide you through the online registration, paper Form 15227, or in-person alternatives, the request itself must be submitted under your own IRS Online Account credentials. Once the IRS issues your six-digit IP PIN, please provide it to us so we can ensure it is correctly entered on your tax return and maintain the added protection against identity-theft refund fraud.