On March 25th, President Trump signed an executive order mandating that the federal government cease issuing paper checks in favor of electronic payments. Despite growing momentum toward digitizing all federal disbursements, the federal government currently still accepts paper checks for certain payments—including estimated tax payments—beyond the September 30, 2025, deadline. Taxpayers can continue mailing checks with Form 1040-ES payment vouchers, and the IRS has made no formal announcement ending that option. However, that may change in the future.
The rationale behind this policy is multifaceted. First, electronic payments are significantly more cost-effective than paper checks. According to the U.S. Treasury, it costs roughly $1.00 to issue and process a paper check, compared to only about 10 cents for a direct deposit. With hundreds of millions of checks issued annually, transitioning to digital payments could save taxpayers billions over the next decade.
Second, electronic payments are faster and more secure. Paper checks are subject to mail delays, theft, loss, and fraud. In contrast, direct deposit ensures funds are delivered quickly and reliably, reducing administrative burdens and risk for both the government and recipients.
The executive order would likely direct federal agencies to phase out check issuance by a set deadline, perhaps within 12 to 24 months. Agencies would be tasked with transitioning beneficiaries and vendors to electronic payment methods such as direct deposit, prepaid debit cards (e.g., the Direct Express® card), or digital wallets where available.
Exceptions would be narrowly defined. Individuals who can demonstrate a hardship or lack of access to banking services may be allowed to request a waiver, although efforts would be made to help them adopt accessible electronic options.
For estimated tax payments, consider switching to IRS direct pay. It’s easy and eliminates the possibility of a lost payment. Alabama offers a similar option. For more information, follow the attached link: The Safest & Easiest Way to Make Tax Payments – Dent Moses, LLP
