What to Know About the IRS and Electronic Payments

By Published On: June 25, 2026Categories: Businesses, Individuals, Tax News, Tax Tips, Services - Tax

The IRS is continuing its transition to a primarily electronic payment system, making it easier, faster, and more secure for taxpayers to pay taxes and receive refunds. While paper checks and money orders are still accepted in many situations today, the IRS has made it clear that electronic payments will become the standard moving forward, with limited exceptions.

For many taxpayers, these changes won’t require much adjustment. However, if you’ve traditionally mailed paper checks or received refund checks by mail, now is the time to prepare.

What Is Changing?

The IRS is modernizing how money moves to and from the federal government. This initiative is intended to:

  • Improve security and reduce fraud
  • Speed up payments and refunds
  • Reduce processing delays and administrative costs
  • Provide more reliable payment tracking

While filing your tax return will remain the same, the way you make tax payments and receive refunds is shifting toward electronic methods.

What You Should Do Now

1. Verify Your Banking Information

If you expect a tax refund, make sure your routing and account numbers are current and accurate. Incorrect banking information can delay your refund and require additional IRS correspondence.

2. Become Familiar with Electronic Payment Options

If you typically mail a check with your tax return or quarterly estimated tax payments, now is a good time to begin using one of the IRS’s electronic payment methods. Options include:

  • IRS Direct Pay
  • IRS Online Account
  • Business Tax Account
  • Credit or debit card payments through approved processors

Electronic payments provide immediate confirmation that your payment was received and help reduce the risk of lost or delayed mail.

3. Plan Ahead for Estimated Tax Payments

Individuals and business owners who make quarterly estimated tax payments should review how those payments are currently being made. Transitioning to electronic payments before they become mandatory can help avoid last-minute issues.

4. Watch for IRS Communications

The IRS continues to release additional guidance as it expands electronic payment capabilities. Some implementation timelines may change, and certain taxpayers may qualify for exceptions if electronic payments create a hardship.

Will Paper Checks Disappear Completely?

Not immediately.

For now, the IRS will continue accepting paper checks and money orders in many situations. However, the agency has stated that it intends to reduce reliance on paper payments over time, with limited exceptions for taxpayers facing hardship or where electronic options are not available. Paper refund checks have already been largely phased out in favor of direct deposit and other electronic payment methods.

How SDK Can Help

As these changes continue to roll out, SDK is monitoring IRS guidance to help our clients stay compliant and avoid unnecessary delays.

If you have questions about the best payment method for your situation, need assistance setting up electronic tax payments, or want to ensure your banking information is properly reflected on your return, our tax professionals are here to help.

Preparing now can help make tax season smoother, more secure, and more efficient in the years ahead.