Required Electronic Payments to the IRS

ByHinali Shah

Commencing on September 30, 2025, it will be mandatory for all payments to or from the IRS to be conducted electronically, as stipulated by Executive Order 14247, which aims to modernize payments to and from America’s Bank Account. This pivotal change is designed to improve efficiency, strengthen security, and reduce the costs tied to paper-based processing.

This reform empowers the U.S. Department of the Treasury to revitalize the government’s payment framework, with the intention of decreasing costs, minimizing fraud, and removing operational inefficiencies that are associated with paper-based transactions.

Accepted Payment Methods
Taxpayers now have access to a range of secure electronic payment options, including:

  1. Bank accounts can be used for direct payments.
  2. The Electronic Federal Tax Payment System (EFTPS) is utilized for making tax payments.
  3. E-filing allows for the withdrawal of electronic funds.
  4. Payments via debit or credit cards can be processed through authorized channels.
  5. Digital wallets serve as a method for making payments.
  6. An IRS Online Account is available for payment management and balance viewing.

Exceptions

While the move to electronic payments is all-encompassing, exceptions will be permitted for individuals who:

  1. Do not have access to conventional banking services
  2. Lack access to digital payment technologies

The Department of the Treasury will issue updated guidance that specifies the waiver process for eligible cases. This ensures that underserved and vulnerable populations have continuous access to federal payments.

As of now, the Treasury has released a Request for Information (RFI) to obtain public input on implementation strategies, but formal guidance is still pending.

Preparing for the Transition

As the Executive Order mandates that all IRS payments be made electronically from September 30, 2025, taxpayers are still waiting for the final implementation guidance from the Treasury Department.

It is essential for taxpayers to take proactive steps to ensure they comply with the new requirements:

  1. Establish an IRS online account
  2. Verify banking information for direct payments
  3. Familiarize themselves with EFTPS and other digital payment platforms

We advise taxpayers to set up an online IRS account to manage payments securely and access their tax information.

State Payments Are Unchanged

Please note: This alteration applies exclusively to federal IRS payments — state procedures are not affected.

Next Steps

Contact Cassidy Advisors and Accountants, LLC today to discuss your unique situation. We are here to assist you in navigating this change effectively and efficiently.

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