Executive Order Ends Use of Paper Checks in Federal Government

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IRS no longer accepting checks

Put Away Your Checkbook-IRS Won’t Issue or Accept Paper Checks After Sept 25, 2025

Modernizing Payments To and From America’s Bank Account, Executive Order

 

In March 2025, President Donald J. Trump signed an Executive Order to modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments. The Order mandates that, effective September 30, 2025, the Federal government will cease issuing paper checks for all disbursements, including intragovernmental payments, benefits, vendor payments, and tax refunds. Payments made to the Federal government, such as fees, fines, loans, and taxes, must also be processed electronically where permissible under existing law.

This order is focused on the crackdown of waste, fraud, and abuse in government by modernizing outdated paper-based payment systems that impose unnecessary costs, delays, and security risks.

Paper-based payments, such as checks and money orders, impose unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies. Mail theft complaints have increased substantially since 2020. Historically, Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer.

Maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in fiscal year 2024 alone.

Check fraud is becoming more common, with banks issuing about 680,000 reports of check fraud in 2022 – nearly double the number from 2021. Digital payments are more efficient, less costly, and less vulnerable to fraud.

Overall, this order is a move to modernize the federal government. President Trump has long championed the need for replacing outdated technology, saying “government needs to catch up with the technology revolution.”

The government is phasing out ALL incoming paper payments. That means if you’re currently paying your taxes, fees, or fines by check, you’ll need to start doing so by card or digital wallet beginning later this year. If you normally receive your tax refund via check, now’s the time to set up an electronic payment method.

How to Prepare for September 30, 2025, Deadline:

  • Set up for electronic payments: If your next tax return indicates that you are owed a refund, opt for direct deposit or another digital payment method when you file.
  • Update your bank account information: The IRS has your information on file. Use the agency’s “Where’s My Refund?” tool to manage your payment preferences.
  • If you don’t have a checking or savings account, consider opening one or exploring prepaid debit card options. According to the executive order, the Treasury will work with financial institutions and consumer groups to support unbanked and underbanked Americans through this transition.

The end of paper checks marks a major shift in how Americans give and receive money from the government. Getting ahead of the curve will help ensure you are ready to embrace the electronic way that is quicker and safer. Keep in mind that this means all payments through Anthony J. Madonia & Associates will be online or electronic. We will no longer be able to submit checks on your behalf. Contact us with any questions or concerns you may have.