Federal Executive Order Ends Paper Checks for Government Payments
On March 25, 2025, President Trump signed an executive order modernizing the way payments are made to and from the federal government. Beginning September 30, 2025, most federal payments will transition entirely to electronic formats.
This means that tax refunds, Social Security benefits, and vendor disbursements will no longer be issued by paper check. Likewise, the federal government will stop accepting paper checks for obligations such as taxes, fees, and fines.
While this shift is designed to improve efficiency and reduce costs, it represents a significant change for individuals and businesses that rely on traditional check processing.
Limited Exceptions to the Rule
Paper checks will only be available in very limited circumstances, and the responsibility falls on the recipient to initiate and document an exception request.
Exceptions & Hardship Categories
Exception Category
- No access to banking / electronic systems
- Emergency payments causing hardship
- National security / law enforcement needs
- Other Secretary-approved circumstances
Examples/Explanation
- Unbanked individuals or those without account access or digital tools
- Disaster relief or urgent payments where digital delay causes harm
- Sensitive or classified payments unsuitable for electronic funds transfer (EFT) systems
- Lack of SSN/ITIN, non-U.S. residents, mobility/travel restrictions
How to Request an Exception
If you believe you qualify for one of the exceptions, here are the steps to follow:
- Contact the agency handling your payment (for example, the IRS for refunds or the SSA for Social Security).
- Prepare a written statement explaining why you cannot reasonably receive electronic payments or pay your taxes electronically.
- Provide supporting documentation, such as:
- Proof of not having a bank account
- Evidence of lack of internet or digital access
- Medical or emergency documentation
Requests must be submitted before September 30, 2025 to avoid disruptions in payment.
What This Means for You
For most taxpayers, retirees, and business owners, this change will have little impact, as electronic payments are already the standard. However, if you or someone you know still relies on paper checks, it’s important to prepare now to ensure uninterrupted access to funds.
One of the most significant changes is that taxpayers will no longer be able to pay taxes by paper check. This includes estimated tax payments, balances due with a tax return, and payments made in response to an IRS notice. Going forward, these payments must be submitted electronically.
At MRM CPAs & Advisors, we’re monitoring this transition closely and can help you understand how it may affect your personal or business financial planning. If you anticipate challenges with electronic payments, now is the time to explore options and gather the necessary documentation.
Contact MRM CPAs & Advisors to discuss your situation and ensure you’re prepared before the September 30 deadline.