Big changes are coming to how U.S. taxpayers pay and receive federal tax funds. On March 25, 2025, Executive Order 14247 directed a transition of nearly all federal government financial transactions—particularly those managed by the IRS—from paper-based methods to electronic funds transfer (EFT). This applies to both federal tax payments to the IRS and IRS tax refunds.

Key dates

• Effective date: September 30, 2025
• Extended individual filers: 2024 balance-due payments for October 15, 2025 must be made electronically
• 4^th Quarter Estimated Payments for 2025: estimated payments due January 15, 2026 must be made electronically

Approved IRS electronic payment methods

• Electronic Federal Tax Payment System (EFTPS)
• Electronic funds withdrawal (when e-filing a return or extension)
• Direct Pay through banks or other financial institutions
• Digital wallets
• IRS Online Account
• ACH or wire transfers

More information: https://www.irs.gov/payments

Noncompliance

Failure to comply may result in penalties, fines, or rejection of the payment.

Limited exceptions

Non‑electronic payments may be allowed in the following situations:

• Taxpayers without access to banking or electronic payment services
• Emergency situations where electronic payment would cause undue hardship
• National security or law-enforcement activities that require non-electronic payment
• Other circumstances at the discretion of the Secretary of the Treasury

State payments

This federal mandate does not change state tax payment rules. However, Pennsylvania already requires electronic payments above certain thresholds for 2025:

• Individuals: $11,000 or more
• Corporations: $1,000 or more Pennsylvania payments can be made through myPATH: https://mypath.pa.gov/_

Why this change is being made

The goals include improving payment efficiency, reducing costs, minimizing fraud risk, and providing faster confirmation that payments were received—eliminating the uncertainty and delays associated with mailing checks.

What you should do now

• Do not wait until a payment is due. Review the options and decide which electronic method works best for you.
• If you do not already have one, enroll in EFTPS and/or set up your IRS Online Account.
• Confirm daily transfer limits and authorization requirements with your bank in advance.
• If you believe you qualify for an exception, contact us as soon as possible to discuss documentation and next steps.

If you have questions or would like help selecting and setting up a payment method, please contact your emc advisor to create a transition plan.