The IRS has released new guidance outlining how it will begin modernizing the way taxpayers send and receive payments during the 2025 filing season. The update, delivered through a new FAQ Fact Sheet, supports the federal government’s initiative to reduce reliance on paper checks and move toward more secure digital payment methods.
Below is a clear summary of the most important updates for individual, business, and international taxpayers as we head into the 2025 filing season.
Key Takeaways
- Paper checks and money orders will continue to be accepted for now, but the IRS plans to reduce their use over time.
- The IRS is prioritizing Direct Pay, IRS Online Account, card and digital wallet payments, and EFTPS for business taxpayers.
- Paper refund checks will still be issued to individuals in 2025, but they will take longer to process.
What Individuals Need to Know
The IRS will maintain its normal return processing procedures this season. However, several updates affect how refunds will be delivered.
Electronic Refunds Becoming the Default
Refunds will be issued electronically when direct deposit information is provided.
When Direct Deposit Information Is Missing
- The IRS will still accept returns that do not include bank account details.
- These taxpayers will receive a CP53E notice requesting banking information.
- If no response is received within 30 days, and there are no other issues with the return, the IRS will issue a paper refund check. Processing may take an additional six weeks.
Refunds for Deceased Individuals
Current procedures remain in place. Paper checks for deceased taxpayers will continue to be accepted and issued until further guidance is released.
Updates for Business Taxpayers
Direct Deposit Now Available for Most Business Returns
Direct deposit has been added to most business return types. The IRS encourages businesses to choose this option because it is faster and more secure.
Paper Checks Still Accepted When Necessary
Businesses may still use paper checks when electronic methods are not available.
International Taxpayers
International taxpayers should continue using their current payment and refund methods. The IRS is developing new secure electronic refund delivery options for future use.
Looking Ahead
Although paper checks are not being eliminated in 2025, the IRS is moving steadily toward digital-first payment systems. Taxpayers can expect a gradual transition over the next few years as additional tools and processes are introduced.
For more information, you can review the IRS FAQ: Questions and Answers about Executive Order 14247: Modernizing Payments To and From America’s Bank.
Have Questions or Need Guidance?
We are here to help you navigate these changes.
Contact our team with your questions or to discuss how this IRS transition may affect your tax planning.