Dear Clients and Friends,
A new Executive Order will end paper checks for most federal payments and collections starting September 30, 2025. This means tax refunds, vendor payments, benefit checks, and even certain payments to the federal government (fees, taxes, fines) will move entirely to electronic funds transfer (EFT) — including direct deposit, debit/credit card payments, digital wallets, and real-time transfers.
Why this matters to you:
- No more paper tax refund checks — refunds will be sent electronically. Taxpayers must have US based bank accounts to receive refunds.
- Social Security beneficiaries will no longer have the option to receive their benefits in check form.
- Vendor and contract payments from the federal government must be via EFT.
- Payments to the government (taxes, fees, etc.) will move to digital channels.
- Exceptions will be limited (e.g., no bank access, certain emergencies).
Action Steps:
- Ensure your bank account information with the IRS and other federal agencies is current.
- Online accounts, bank account information, direct deposit, payment instructions, and other related information can be found on the IRS website.
- Social Security beneficiaries will need to visit the Social Security Administration to change their payment information to include a bank account or enroll to receive a prepaid debit card.
- If you receive federal payments, enroll in direct deposit as soon as possible.
- Businesses working with the government should update payment systems to accept and make digital payments.
We will continue to monitor developments and provide updates as additional guidance or regulations become available.
Questions?
If you have questions about how these changes affect your specific situation, contact our office to schedule a consultation.
Very truly yours,
Abeles and Hoffman, P.C.
