Earlier this year, President Trump issued an executive order that mandated the federal government cease paper check payments. In line with this, after September 30, 2025, you can no longer receive or mail paper checks to Federal agencies. To receive or make payments to agencies such as the Internal Revenue Services or the Social Security Administration, you will need to set up a way to make and receive payments digitally.
Elimination of Paper Checks
Fraud and cost are the reasons cited for this shift. Since the beginning of the COVID-19 pandemic, check fraud has increased nationwide, along with checks being lost, stolen, or altered. It is also mote expensive to issue a paper check than to complete an electronic fund transfer.
All federal agencies will stop sending and receiving paper checks after September 30, 2025. This includes the following agencies:
- The Internal Revenue Service (IRS)
- Social Security Administration (SSA)
- Department of Veterans Affairs (VA)
- U.S. Department of the Treasury
- U.S. Department of Labor (DOL)
- Railroad Retirement Board
- Federal Motor Carrier Safety Administration (FMCSA)
- Defense Finance and Accounting Service
- The Bureau of Alcohol, Tobacco, and Firearms (TTB)
- The Office of Personnel Management
Payments made or received must now be done so electronically, with an exception provided for a limited amount of people, who will need to apply for a wavier issued at the discretion of the Treasury Electronic Payment Solution Center.
Tax Refunds and Payments
Refunds
To receive a federal tax refund, you will need to set up a digital payment method:
- Direct Deposit: You can make this selection within your tax return. You will need to provide your accountant with a voided check.
- Mobile payment app (such as PayPal): Log-in to your IRS Poral to link this account.
- Reloadable prepaid debit card: Log-in to your IRS Poral to link this account.
For assistance with federal tax refund call the IRS at 1-800-829-1040.
Payments
To make a federal tax payment, you will need to set up a digital payment method:
- Direct Bank Payment: use the Electronic Federal Tax Payment System (your accountant will need a voided check).
- Digital Wallet or Debit or Credit Card: Log-in to your IRS portal and set up IRS Direct Pay.
Social Security and VA Benefits
Although the benefit amounts are not changing, you may experience a temporary interruption in payments if you do not set up a way to electronically receive payments by 9/30/25.
- Direct deposit: Sign up to have funds transferred directly into your bank account. If you don’t have a bank account, the Treasury recommends opening one by visiting the FDIC website or MyCreditUnion.gov.
- Direct Express card: Use a prepaid debit card designed for federal benefit recipients.
You may enroll online for digital payments from several federal agencies (like Social Security, Veterans Affairs, SSI, etc.) at GoDirect.gov or by calling Go Direct at 1-877-874-6347. For all other federal agencies, visit the applicable website for potential ways to receive assistance setting up your digital payment.
If You Do Not Have a Bank Account
You may use a Direct Express Prepaid Debit Card to receive digital payments from the SSA or the IRS if you don’t have a bank account, according to the U.S. Treasury. The prepaid card functions similarly to a traditional debit card and has no enrollment fees, minimum balance requirements, or credit checks for preapproval to get the card.
Alternatively, there may be limited exceptions for people who do not have bank accounts that need to receive Social Security benefits or an IRS tax refund via a physical check, per Trump via the executive order:
- Individuals without access to digital banking services (or other electronic payment systems).
- Emergency payments (those that could cause an undue hardship, like a FEMA disaster relief payment).
- National security matters.
These “rare circumstances” may also apply to beneficiaries of other federal agency checks, like recipients of the Veterans Affairs and the Civil Service. These include mental impairment, living in a remote location that does not support electronic banking, and being over the age of 90 years old. You can request a waiver application by calling Call the U.S. Treasury’s Electronic Payment Solution Waiver Line at 1-855-290-1545.
Chris VanArsdale
Chris is a Manager in our tax department with over 10 years of experience. His specialties include international, trust and estate, and business tax filings.
