The End of Paper Checks for Federal Payments: What Coldstream Clients Need to Know

Beginning September 30, 2025, the U.S. Treasury will no longer issue or accept paper checks for most federal payments. This change affects how Social Security benefits, tax refunds, trust and estate payments, and other government disbursements are delivered. All payments will transition to Electronic Funds Transfer (EFT), such as direct deposit into a bank account or a U.S. Treasury–issued Direct Express® Debit Mastercard®.

At Coldstream, our priority is helping you stay ahead of changes that impact your financial life. Here’s what you need to know and how we can support you.

Why the Change?

The Treasury is moving away from paper checks to reduce fraud, theft, and lost payments, while also cutting significant costs. In fiscal year 2024 alone, maintaining paper-based systems cost taxpayers more than $650 million. By switching to EFT, payments will be faster, more secure, and more reliable.

What This Means for Individuals

Federal Benefits

If you currently receive Social Security, Veterans Affairs, or other federal benefits by check, you’ll need to transition to direct deposit or the Direct Express® Debit Mastercard®.

Tax Refunds and Estimated Payments

Refunds will only be issued electronically. If you make quarterly estimated tax (ES) payments, you will also need to switch to an electronic method:

• IRS Direct Pay – Pay directly from your bank account at irs.gov/payments/direct-pay.
• EFTPS (Electronic Federal Tax Payment System) – A free U.S. Treasury service that allows you to schedule ES and other federal tax payments at eftps.gov.

What This Means for Trusts and Estates

Trusts and estates are also required to transition to electronic payments by September 30, 2025. After that date, the IRS will no longer accept paper checks for trust returns or tax payments.

• EFTPS – The IRS’s preferred method for trust payments. Enrollment requires the trust’s EIN and linked bank or brokerage account information. Once set up, payments can be scheduled in advance.
• Wire Transfer –Trust payments can be made by wiring funds directly from your financial institution to the IRS
• Electronic Funds Withdrawal (EFW) – Available if you e-file Form 1041; you can authorize the IRS to debit the trust’s account when filing.
• IRS Direct Pay – Not available for trusts or estates (only for individuals).

Important: If a trust still uses paper checks today, those payments will only be accepted if received before September 30, 2025. After that, EFT methods will be mandatory.

How to Enroll

The Treasury has set up resources to make this transition simple:

• Go Direct Enrollment Website: Enroll Now at https://godirect.gov/gpw/.
• Electronic Payment Solution Center: Call 1-877-874-6347 for enrollment support by phone.

We recommend reviewing your current payment method well before the September deadline to ensure a smooth transition.

Limited Exceptions

Paper checks will remain available only in rare cases—for example, if someone lacks access to banking services or in certain emergency or national security situations.

How Coldstream Can Help

We understand that changes like these may bring up questions. If you’d like to discuss how this transition affects your specific situation—or how it applies to trusts or estate accounts—your Coldstream Wealth Manager is available to answer your questions.