Federal Tax Payments – Electronic Payment Mandate
Beginning as early as September 30, 2025, the president’s March 25, 2025, executive order “Modernizing Payments To and From America’s Bank Account” mandates all payments to and from the US Treasury be paid electronically. This includes federal tax payments and federal tax refunds.
Timing of Electronic Tax Payments & Refund Mandate
Verbiage in the order indicates there may be a delay in implementing the order: “As soon as practicable, and to the extent permitted by law, all payments made to the Federal Government shall be processed electronically, except as specified in section 4 of this order.” The order also indicates all federal tax refunds shall be issued by electronic means beginning September 30, 2025.
Will There be a Transition Period?
Presumably, when the electronic tax payment requirements are implemented, we may be advised that all tax year 2024 payments, prior year, and 2025 estimated tax payments—up to and including 4th quarter estimated tax payments due January 15, 2026—may be eligible to be paid by paper check or money order as a transition period for the order. However, payments for subsequent tax years and tax payments made for 2024 and prior years after a specific date—perhaps January 15, 2026—are expected to be required to be paid electronically or be subject to penalties unless the taxpayer is eligible for one of a few exceptions that may be available.
Suggestion:
Regardless of this upcoming mandate, we suggest using electronic payment methods for all tax payments. This is more reliable and more secure way to make the payments. Now, with this mandate, it will soon be required for federal payments. So if you are still mailing vouchers, this is a good time to start paying electronically.
