Starting on September 30, 2025, all transactions to or from the IRS are required to be conducted electronically in accordance with Executive Order 14247, which focuses on Modernizing Payments to and From America’s Bank Account. This significant change aims to enhance efficiency, bolster security, and lower the expenses related to paper-based processing.

This change enables the U.S. Department of the Treasury to revamp the payment infrastructure of the government, with the goal of cutting costs, reducing fraud, and eradicating operational inefficiencies linked to paper-based transactions.

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

1. Direct payment directly from bank accounts.
2. Electronic Federal Tax Payment System (EFTPS) facilitates tax payments.
3. Electronic funds can be withdrawn during the e-filing process.
4. Payments can be made using debit or credit cards through authorized processors.
5. Digital wallets are also an option for transactions.
6. The IRS Online Account allows users to manage payments and check balances.

Exceptions

While the transition to electronic payments is extensive, exceptions will be made for individuals who:

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

The Department of the Treasury will release updated guidance outlining the waiver process for qualifying cases. This guarantees that underserved and vulnerable populations retain continuous access to federal payments.

Currently, the Treasury has issued a Request for Information (RFI) to collect public feedback on implementation strategies, although formal guidance remains forthcoming.

Preparing for the Transition

In light of the Executive Order mandating that all IRS payments be conducted electronically beginning September 30, 2025, taxpayers are still anticipating the final implementation guidance from the Treasury Department.

It is advisable for taxpayers to take proactive measures to ensure adherence to the new requirements:

1. Create an IRS online account
2. Confirm banking information for direct payments
3. Acquaint themselves with EFTPS and other digital payment systems

We suggest that taxpayers establish an online IRS account to facilitate secure payment management and access to their tax information.

State Payments Continue to Be the Same

Note: This modification pertains solely to federal IRS payments — state processes remain unchanged.

Subsequent Actions

Reach out to Gerald Hoots, LLC today to review your individual circumstances. We are available to assist you in managing this change smoothly and successfully.