Executive Order 14247 Requiring Electronic Tax Payments and Refunds

Beginning October 1, 2025, federal tax payments and refunds will move fully electronic under Executive Order 14247. This significant shift impacts how taxpayers submit estimated tax payments and how the IRS issues refunds.

If you currently mail paper checks to the IRS—especially for quarterly estimated payments—this change directly affects you. Below is what you need to know and how to prepare before the September 30, 2025 transition deadline.

What Executive Order 14247 Requires

As a result of Executive Order 14247, the IRS will be utilizing electronic means to handle all disbursements and receipts, including income tax payments and refunds, starting on October 1st, 2025. While the order clearly states the Treasury must stop issuing paper refund checks, it is implied that the IRS, and other federal agencies, will no longer accept paper checks after September 30th, 2025 as well. Instead, federal tax payments must be submitted electronically.

The IRS has not yet formally clarified how it will handle paper checks received after the September 30, 2025 deadline. However, given the language and intent of the order, taxpayers should plan to submit all federal tax payments electronically moving forward.

Impact on Estimated Federal Tax Payments

Our records show that you are required to make estimated federal tax payments. This means you will not be able to mail a paper voucher and check to the IRS for your fourth quarter estimated tax payment.

Although the IRS has not confirmed whether it will reject paper checks received after the deadline, it is our recommendation that you pay your fourth quarter estimates electronically to avoid potential delays, penalties, or processing issues.

The fourth quarter estimated tax payment is due January 15, 2026. We recommend scheduling payment prior to that date to ensure sufficient processing time.

How to Pay Estimated Taxes Electronically

You can schedule your fourth quarter estimated tax payment to be automatically withdrawn from your bank account, or you can pay with your credit or debit card. Both options are available on the IRS website.

Please note that payment processing fees apply if you choose to pay by credit or debit card.

Option 1: Schedule an Automatic Bank Withdrawal (IRS Direct Pay)

1. Go to: https://directpay.irs.gov/directpay/payment?execution=e3s1
2. On the “Reason for Payment” dropdown, select “Estimated Tax.” Verify the payment is applied to “1040ES” and to the 2025 tax period, then click Continue.
3. On the Identity Verification Screen, select 2024 as the tax year and enter the requested information exactly as it appears on your 2024 tax return. Click Continue.
4. On the Payment Information Screen, enter the amount of your fourth quarter estimated tax payment and confirm the amount.
   • Note: The payment is due January 15, 2026, but we recommend scheduling it prior to that date to allow time for processing.
5. Enter your bank account information and click Continue.
6. Confirm the information shown is correct. If accurate, complete the Electronic Signature section and click Submit.
7. Save the payment confirmation for your records.

Option 2: Pay by Credit or Debit Card

1. Go to: https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card
2. Select the credit card processor you would like to use.
3. For either processor:
   • Select “Personal” as the tax category
   • Select Form 1040-ES
   • Choose tax year 2025
   • Enter the amount of the estimated tax payment
   • Provide your credit or debit card information
4. Once submitted, save the confirmation number for your records.

Please note that credit and debit card payments are subject to processing fees charged by the payment provider.

Prepare Now to Avoid Disruptions

Executive Order 14247 represents a permanent shift toward electronic federal tax administration. Waiting until the last minute to transition from paper payments could result in delays or complications.

If you have questions about scheduling electronic payments, setting up IRS Direct Pay, or determining your estimated tax requirements, please contact Siepert & Co., LLP. Our team is here to ensure your payments are submitted accurately and on time.