Deadline approaches: Federal paper checks to be eliminated Sept. 30

The federal government will stop issuing paper checks for most payments at the end of this month, marking a major transition to electronic transactions. The change follows an executive order signed earlier this year by President Trump, which directed agencies to phase out paper-based payments such as checks and money orders due to higher costs, slower delivery times and greater risks of fraud and theft. 

The Ohio Society of CPAs encouraged our members to submit feedback on the U.S. Department of the Treasury’s implementation of the move prior to the comment period closing on June 30.  

In August, the Treasury Department confirmed the Sept. 30 cutoff, with Treasury Secretary Scott Bessent calling the move a bipartisan goal long in the making. He emphasized that electronic payments are faster, more secure, and more dependable than paper checks. “Thanks to President Trump, this will help reduce fraud and theft. It will also remove delays that prevent hardworking Americans from receiving their vital payments,” Bessent said. 

In addition to IRS tax refunds, the shift will primarily affect individuals still receiving federal benefits, such as Social Security and Veterans Affairs payments, by paper check. Federal agencies, including the Alcohol and Tobacco Tax and Trade Bureau, have reiterated the deadline and urged beneficiaries to make the switch to direct deposit before the end of the month. Recipients can enroll online at GoDirect.gov, by calling the Electronic Payment Solution Center at 800-967-6857 or by contacting the issuing agency directly. 

At the same time, taxpayers should be aware that the IRS has recently released draft versions of key tax forms for the upcoming filing season. Drafts of Form 1040, Schedule A, and a new Schedule 1-A, which includes provisions such as “no tax on tips,” deductions for overtime and car loan interest, and an enhanced deduction for seniors, are now available on the IRS website. While these drafts provide an early look at possible changes, no instructions have been issued yet, leaving some details subject to clarification.