If you haven’t had to pay the IRS recently for taxes owed personally or for your freelance business, you may be in for a surprise if you were still using paper checks to send payments.
It is now official that the U.S. federal government will require nearly all payments to and from federal agencies—including the IRS and Social Security Administration—to be made electronically. This means that if you have payments to make for the estimated tax deadline and tax return extension deadline occurring this month (October 15, 2025) you must use the government’s electronic payment system.
For tax payments and refunds, the IRS will no longer accept paper checks. All payments—including estimated taxes—must be made electronically, and all refunds will be issued via direct deposit or prepaid debit card. If you’ve been receiving a paper refund check, you’ll need to provide your bank account information or opt into a prepaid card option.
The IRS provides several electronic payment options for freelance businesses.
Electronic payment methods include IRS Direct Pay, which allows free payments from your bank account, and the Electronic Federal Tax Payment System (EFTPS), which is available to both individuals and businesses. You can also use the IRS2Go mobile app, debit or credit cards through approved third-party processors (note that fees may apply), or Electronic Funds Withdrawal (EFW) when filing your taxes electronically.
Paper checks will no longer be accepted or issued for tax payments, refunds, or Social Security benefits. For self-employed, this shift is more than a policy update—it’s a call to action to modernize how you manage your money and stay compliant.
This change is part of a broader federal initiative to reduce administrative costs, improve security, and eliminate delays associated with paper-based transactions. Electronic payments are faster, safer, and more reliable. They offer direct access to funds without the need to wait for mail delivery or visit a bank.
Social Security is also subject to mandatory electronic payment regulations.
If you receive Social Security benefits, you’ll need to transition to one of two electronic options. The first is direct deposit, which sends payments straight to your checking or savings account. You can manage this through your Social Security account online. The second option is the Direct Express® card—a prepaid debit card designed for individuals who don’t have a bank account. To enroll, visit www.usdirectexpress.com or call 1-800-333-1795.
To stay compliant and avoid non-payment or late payment penalties, as well as disruptions to your cash flow, take action now. Update your direct deposit information with both the SSA and IRS. If you don’t have a bank account, consider enrolling in Direct Express®.
Prepare to pay electronically going forward…
With estimated taxes due for the fourth quarter of 2025 on October 15, it’s critical to be prepared to pay electronically as this will be the first quarterly estimated tax payment fully subject to the new rule.
If you have questions about how this change affects your freelance business or need help with planning for estimated tax payments, reach out to a trusted tax advisor. Preparing now will help ensure a smooth transition to the mandated IRS and Social Security electronic payments without any fines, penalties or disruptions to your freelance income flow.
