The Federal Government Is Phasing Out Check Payments

The Federal Government Is Phasing Out Check Payments

August 25, 2025

In March 2025, President Donald Trump signed an Executive Order that changes how the federal government sends and receives money. The big takeaway: paper checks are going away.

Starting September 30, 2025, the Treasury will no longer issue paper checks for most payments. This includes tax refunds, social security and other federal benefits, and even vendor payments. If you normally pay your taxes by mailing in a check, you will also need to switch to an electronic payment method.

This shift is designed to cut down on fraud, lost checks, and delays—but it does mean some action is needed now.

What’s Changing?

• After September 30, 2025, the federal government will no longer send refunds or benefits by paper check.
• Tax payments will also need to be made electronically (through options like direct debit, EFTPS, or IRS.gov).

What You Should Do Now

To avoid disruptions:

• Set up direct deposit for your tax refund, social security, veterans’ benefits, or any other federal benefit.
  • You can enroll online, call the agency that pays your benefits, or contact the Electronic Payment Solution Center at 800-967-6857.
• If you normally pay taxes by check, you need to start using electronic options.
• The Treasury has some exceptions and options for those without access—call the Electronic Payment Solution Center for guidance.
• When possible, consider setting up an online IRS account to access tax records and make and view payments.
• Watch out for scams. It’s unfortunate, changes like this attract fraudsters. If someone contacts you about switching to direct deposit, take the necessary precautions to ensure legitimacy before you share any personal information. Use official websites or phone numbers you know are real or ask for help from a trusted source.

Why Act Now?

This change is coming quickly, and waiting could cause significant delays. Consider updating and setting up your electronic deposit and payment methods now means your refunds and payments will continue without interruption.

For further guidance, contact your trusted Larson tax advisor.  Larson and Company has developed a suite of services specifically to serve the needs of companies of all sizes in a wide range of industries.

References

U.S. Department of the Treasury. (August 14, 2025). Treasury Announces Federal Government Will Phase Out Paper Checks on September 30th. Retrieved from Treasury.gov. U.S. Department of the Treasury

The White House. (March 25, 2025). Modernizing Payments To and From America’s Bank Account. Retrieved from WhiteHouse.gov. The White House