September 11, 2025

The rushed shift by Treasury toward eliminating paper checks by September 30, 2025 could leave vulnerable taxpayers behind. Learn the risks and how to navigate them.

A sweeping executive order is accelerating the transition from paper checks to purely digital federal payments—but not without raising serious concerns. In the name of efficiency, this move threatens to leave behind vulnerable taxpayers who rely on traditional payment methods for processing refunds and other interactions with the IRS. Here’s what you need to know, why it matters, and how to respond.

1. What’s Changing—and Why

Issued in March 2025, the executive order mandates that by September 30, 2025, the U.S. Treasury must cease issuing or accepting paper checks for all federal payments—including tax refunds—as part of an effort to modernize, reduce fraud, and cut costs.

Proponents highlight significant benefits: electronic payments are faster, safer, and cheaper. Paper systems, on the other hand, are vulnerable to mail theft and fraud, and maintaining them cost over $657 million in 2024.

2. Who Stands to Lose—and Why This Matters

An abrupt transition to digital-only payments poses real risks for certain groups:

• Around 5 million taxpayers—or approximately 6% of filers—still received refunds via paper check in the 2025 filing season.
• Many are unbanked—lacking access to traditional banking options—or are elderly, disabled, or living in rural or tribal areas with limited broadband access.

Tax advocates warn that this could disrupt access to legally owed refunds. Without proper exceptions or a gradual transition, millions may face delays—or no refunds at all.

3. What Experts Recommend

The Tax Law Center, in a recent blog, urges Treasury and IRS to adopt a carefully phased approach—not a hard switch. They advocate for:

• Meaningful exceptions, especially during the early years of the transition.
• Robust outreach and education campaigns to ensure taxpayers understand how, when, and where to access their funds.

The AICPA (American Institute of CPAs) echoes these concerns, recommending:

• Exceptions for those without U.S. bank accounts or Social Security numbers.
• Delays or tailored guidance for trusts, estates, and international taxpayers.
• Enhanced capabilities for systems like EFTPS to support this shift.

4. The Government’s Responsibility

To deliver this transformation responsibly, authorities should:

• Expand and clarify exemptions—especially for the elderly, those who tried but couldn’t open a bank account, or those in remote areas.
• Design accessible electronic alternatives, such as prepaid debit cards, with no hidden fees, free ATM access, and options for reloading or reissuing cards as needed.
• Launch a public-awareness campaign, precisely as the executive order mandates, to combat confusion and scam risks.

5. Taking Action Now

If you’re a business owner, high-net-worth individual, or legacy-focused family, here’s how to prepare and support those impacted:

• Educate: Share resources with clients or family members who rely on paper checks, especially if they may fall within vulnerable groups.
• Proactively plan: Ensure that those who prefer or require alternative methods are registered for direct deposit, digital wallet, or prepaid card systems.
• Stay informed: IRS and Treasury guidelines are still evolving. Monitor updates on the exception process and implementation timelines.

The shift to digital federal payments is a modernization we all need—but it cannot come at the expense of accessibility or fairness. A measured, inclusive rollout that preserves essential safeguards will ensure no one is left behind.

Would you like to schedule a personalized planning session to future‑proof your financial arrangements? Or are you considering legacy or estate planning strategies in anticipation of these structural changes? Let’s talk.

This blog was developed with the assistance of AI-based tools for research, drafting and editing support (Chat GPT), and reviewed by OMNI 360 personnel for accuracy and relevance.