The IRS Phases Out Paper Checks: Are You Set Up For Electronic Payments?

The U.S. Treasury is eliminating paper checks for federal tax refunds and payments, with further guidance on implementation expected before the 2026 filing season begins.[1]  This change follows Executive Order “Modernizing Payments To and From America’s Bank Account,” which directed the Treasury to move payments to electronic methods “as soon as practicable.”[2] [3]

At the same time, the U.S. Postal Service has adopted new mail-processing procedures that can significantly delay postmarking.  Under these changes, a mailed check may not be postmarked on the day it is dropped off, but instead when it reaches a regional processing center – sometimes one or more days later.[4]  Because many filing and payment deadlines depend on the postmark date, taxpayers who mail returns or payments near the due date now face greater risk of receiving a later postmark and being treated as late.

Together, these developments make it more important than ever to shift to electronic payment and filing methods wherever possible, and to plan ahead when mailing is unavoidable. 

The following outlines various federal and Wisconsin electronic payment options. Please note that some types of trusts will be required to set up an EFTPS online account, which can take significant time to establish, so we recommend you do so immediately in case you need it in the future. 

Federal Payment Methods:

• IRS Direct Pay - available for individuals only; no account needed. Pay from checking or savings account. Does not support Trust returns.

• Electronic Federal Tax Payment System (“EFTPS”) – available for businesses, estates, and trusts.

If you have a Trust or Partnership that needs to make tax payments: plan to use EFTPS for federal payments. IRS Direct Pay does not accept 1041 or 1065 payments. 

How to Use IRS Direct Pay (for individuals/1040s only):

Direct Pay is the IRS’s free tool that lets you pay directly from your checking or savings account. No setup required. Go to https://www.irs.gov/payments/pay-personal-taxes-from-your-bank-account to make a payment.

In the first drop-down menu, select the Reason for Payment. The most common Reason for Payment for an individual taxpayer will be “Application for Extension”, “Balance Due”, or “Estimated Tax”.

In the second drop-down menu, select Apply Payment To and select the appropriate option, such as “Income Tax – 1040” or “1040ES” for Estimated Tax payments.

In the last drop-down menu, select the tax period to apply the payment

How to Create an EFTPS Account:

EFTPS is the official U.S. Treasury system for paying federal taxes online. This free service is specially designed for trusts, estates, and most businesses, but it takes days and sometimes weeks to set-up in advance. 

Go to https://www.eftps.gov/eftps/ -> click Enroll. Choose Business for trusts/estates and entities (using the proper EIN).

Enter your information (tax ID, address of record, bank account used to pay estimates and tax).

A pin will be delivered by mail (generally 5-7 business days).

Set your password online once the PIN arrives and finalize registration.

Sometimes additional correspondence with the IRS is required to finalize account set-up. 

Wisconsin Payment Methods:

• Quick Pay – one-time payment, no login needed (best for occasional payers)

• My Tax Account (“MTA”) – full online account to manage balances, view history, and schedule recurring payments.

How to Use Quick Pay (no account; only for 1040s):

Go to https://www.revenue.wi.gov/Pages/OnlineServices/Pay.aspx

Select Make a Payment – Individuals and Fiduciaries / Direct Debit / Quick Pay

Enter relevant taxpayer and banking details

How to Create a MTA Account:

Go to https://tap.revenue.wi.gov/mta/_/

Click Sign Up and provide SSN/EIN, contact information, and set up login credentials

Verify security questions/email and create username and password

If you have any questions or if you would like our help setting up your electronic payment accounts, please contact our office at firm@olglawoffice.com or (262) 238-6996. 

Endnotes:

[1] https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers

[2]https://www.whitehouse.gov/presidential-actions/2025/03/modernizing-payments-to-and-from-americas-bank-account/

[3] https://fiscal.treasury.gov/news/paper-checks-going-away.html

[4] https://www.wislawnow.com/2025/11/postmark-changes-at-the-post-office-and-late-mail/