IRS Paper Checks Deadline Approaches: What to Expect After September 30

Paper checks are becoming a thing of the past — and for good reason. Rising fraud rates, high operational costs, and inefficient processing have pushed the federal government to phase out paper-based payments.

Earlier this year, President Trump signed an executive order mandating all federal agencies stop issuing paper checks by September 30, 2025.

Agencies like the IRS, Social Security Administration (SSA), and Department of Veterans Affairs (VA) will switch completely to electronic payments, affecting millions of recipients. Here’s everything you need to know to stay prepared.

Why Paper Checks Are Being Eliminated

• Massive spike in fraud: The Bureau of Fiscal Service reported a 385% increase in check fraud since the COVID-19 pandemic, significantly affecting IRS and SSA payments.
• High costs: Issuing paper checks costs about 50 cents per payment, while electronic funds transfers (EFT) cost less than 15 cents.
• Operational inefficiency: Paper checks are 16 times more likely to be lost, stolen, altered, or delayed, making digital options more reliable and secure.

Federal Agencies Ending Paper Checks

After September 30, 2025, these federal entities will stop sending or accepting paper checks:

• IRS (Internal Revenue Service)
• SSA (Social Security Administration)
• VA (Department of Veterans Affairs)
• U.S. Department of the Treasury
• Department of Labor (DOL)
• Railroad Retirement Board
• Federal Motor Carrier Safety Administration (FMCSA)
• Other agencies, including the Defense Finance and Accounting Service, TTB, and the Office of Personnel Management

How to Pay Taxes Without Paper Checks

You will no longer be able to pay federal taxes with paper checks. Instead, use one of these digital payment options:

• Electronic Federal Tax Payment System (EFTPS)
• IRS Direct Pay
• Your online IRS account
• Debit/credit cards or digital wallets

Note: If you already pay electronically, you don’t need to take any action.

Getting Your IRS Tax Refund

If you usually receive a paper refund check, you must switch to a digital method:

• Direct deposit to a bank account
• Prepaid debit card
• Mobile payment apps like PayPal

Your state tax agency may have different rules, so check your state Department of Revenue for accepted payment methods.

How Social Security Payments Will Be Affected

Social Security benefits will continue, but paper checks will end. To keep your benefits flowing:

• Set up direct deposit into your bank account
• Use a Direct Express prepaid debit card

Enroll at GoDirect.gov or call 1-877-874-6347. For assistance, contact SSA at 1-800-772-1213.

Impact on Medicare Premium Payments

If you pay Medicare premiums via paper Social Security checks, you must switch to electronic payments before the deadline.
If you already pay premiums electronically or directly, no action is required.

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No Bank Account? Here’s What to Do

If you don’t have a bank account, you can:

• Use a Direct Express Prepaid Debit Card with no fees or credit checks
• Apply for a waiver if you meet certain conditions:
  • Mental impairment
  • Living in a remote area
  • Age 90+
  • Emergency or national security situations

How to Apply for a Waiver

If you qualify for an exemption to continue receiving physical checks, follow these steps:

• Call the U.S. Treasury’s Waiver Line at 1-855-290-1545
• Request and complete FMS Form 1201W
• Meet strict eligibility criteria to be approved

Watch Out for Scams During This Transition

With such a major shift, scammers are targeting recipients. Stay safe by following these tips:

• Never share banking/login details via phone, text, or email
• Update payment info only on official sites like SSA.gov or IRS.gov
• Consult a trusted person before acting on urgent payment-related messages

The federal government’s move to eliminate paper checks aims to cut fraud, cost, and delays, but it requires action from anyone still receiving printed payments.

By switching to electronic deposits or prepaid cards before the September 30, 2025 deadline, you can ensure your tax refunds, Social Security benefits, and other federal payments continue smoothly — without interruption or risk.

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