What You Need to Know About the New IRS Payment Process

By Josh Dekam

In March 2025, President Trump signed an executive order that would phase out the ability to make payments or receive refunds through a paper check by September 30, 2025.  This also includes Social Security beneficiaries who receive their benefits through a check. On September 23, the IRS announced that they will publish detailed guidance for 2025 tax returns before the 2026 filing season begins. 

The primary rationale for this executive order was to enhance efficiency in making payments and issuing refunds, minimize the risk of fraud, and reduce the costs incurred by the IRS. While the IRS has not officially announced that this deadline will be met, it is believed that this will be the reality moving forward, with disbursements and receipts from the Federal Government.   

Many people still utilize checks to pay their federal tax estimates and extension payments. For those clients who use paper checks or do not have bank accounts, this news may come as a surprise. However, we hope to help all clients make the transition to alternative payment or receipt methods suggested by the IRS as simple and pain-free as possible.   

Methods for Making & Receiving IRS Payments  

The Treasury has many different methods for making and receiving payments that taxpayers can transition into, and a list of links to these alternatives is included at the end of the article for you to research which option is best for you.   

IRS Online Account Direct Payments 

If you currently have a bank account, the immediate suggestion is to create an IRS account and make your payments through the website. The setup for this method is relatively easy and requires your personal information, including your name, address, and bank routing and account numbers. The added benefit of this method is that the system will retain your payment history, which you can later reference for personal use or even provide to your tax professional. 

Credit or Debit Card Payments  

A similar method to direct pay is utilizing a digital wallet or a debit or credit card, but these methods will incur fees; resulting in a larger expense than just the taxes alone. The IRS’s website does mention that the fees are tax-deductible on business tax payments—however, this is an additional upfront cost for the business.   

During tax preparation, consider asking your partner to make payments on a specific date to ensure the funds are deposited into the correct accounts. While this option only applies to the filing of a return and not to estimated payments, it can help reduce one payment you might otherwise need to make on your own.   

Direct Express Card  

For clients who do not have a bank account, we recommend signing up for a Direct Express Card. A Direct Express Card is a debit card that does not require a bank account and is issued by the US Government to receive benefits or make payments through the debit option. 

Ask the Tax Experts at Maner Costerisan for IRS Payment Support  

We will continue to monitor IRS communication for updates on the transition and any available exceptions for individuals without access to electronic payment methods. If you have any questions, please reach out to the Maner Costerisan tax team, and we will be happy to help you determine the best method for making and receiving payments going forward.   

Helpful IRS Payment Links: 

• Treasury Announces Federal Government Will Phase Out Paper Checks on September 30th | U.S. Department of the Treasury  
• Refunds | Internal Revenue Service  
• Payments | Internal Revenue Service  
• Direct Express®