In March 2025, the White House issued an Executive Order on Modernizing Payments to and from America’s Bank Account (essentially the IRS’s system for payments and refunds). As part of this effort, the U.S. Treasury announced that, starting September 30, 2025, it will no longer send paper checks for IRS payments. From that date forward, refunds and other federal tax payments will only be issued electronically.

For dental practice owners, this may not feel like a big shift since you’re probably already paying and receiving funds electronically. However, it’s important to understand what’s happening and how to help family members who may still rely on paper checks prepare for the change.

Why the Change Is Happening

This particular shift is part of a broader government initiative to modernize payments. Electronic transfers are faster, more secure, and more cost-effective than paper checks, and they also reduce the risk of mail theft, fraud, or lost payments, something that has grown in recent years.

What It Means for You

• Refunds: If you typically get your IRS refund by check, you’ll need to provide direct deposit details or another electronic option going forward.
• Payments: While details are still emerging, the IRS is expected to encourage or even require more electronic tax payments. 
• Exceptions: Some taxpayers, such as individuals without bank accounts or those facing specific hardships, may still be able to request paper checks, but these allowances will be rare.

Why We’re Sharing This

While this change may not affect you directly, we want to ensure everyone is as informed as possible. You may have family members, especially older relatives, who still depend on paper checks. For them, this shift could feel like a big adjustment. Passing along this information now gives them time to prepare before the next tax season and allows them to set up direct deposit or look into alternatives like prepaid debit cards.

What To Do Now

• Confirm your bank information with the IRS if you normally get refunds. You can confirm or update your bank account information through secure IRS tools like Direct Pay, EFTPS, and the IRS Online Account.
• Encourage family members who still depend on paper checks to talk to their bank or financial advisor about electronic options.
• Stay informed: The IRS is expected to release additional guidance on payment acceptance and exceptions over the coming days. We will do our best to keep you updated as new information is released.

Note For Those Yet to File Their 2024 Tax Return

If you have not yet filed your 2024 tax return, but plan to before the October 15 deadline, keep in mind that the new rules will apply to you. Beginning September 30, 2025, IRS refunds will only be issued electronically, and any balance due will be paid the same way. If you don’t provide valid banking information for your refund, you risk delays or even having the payment held until those details are confirmed.

At the end of the day, this change is about making the system faster and more secure. If you have any questions or want help, just let us know. We are here to help make this transition as seamless as possible.