How to Prepare for the IRS Ending Paper Tax Payments in 2025

A major shift is coming to the IRS, and surprisingly few taxpayers have heard about it.

Beginning September 30, 2025, the IRS started phasing out its processing of many paper-based submissions. Even more eye-opening: paper check payments may stop being accepted as early as January 2026.

For anyone who mails estimated payments or still sends checks out of habit, this change deserves attention. The move is part of the IRS’s broader push toward modernization, and it’s one that’s already affecting how quickly notices are issued, how payments are logged, and how long it takes for taxpayers (and their advisors) to get responses.

Let’s break down what’s happening, why it’s happening, and what you should be doing now so you’re ready long before the deadline.

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Why the IRS Is Ending Most Paper Processing

If you’ve ever wondered why mailed tax documents or payments seem to disappear into a black hole, you’re not imagining it. Even before COVID, the IRS struggled with massive paper backlogs. During the pandemic, some mail literally sat in semi-trailers waiting to be opened.

While the IRS has stepped up its modernization efforts in recent years, physical mail remains one of its most time-consuming bottlenecks. Staff who are tied up processing envelopes and checks can’t assist with tasks like responding to notices, improving turnaround times, or supporting taxpayers in other ways.

Moving to digital payments and submissions helps free up those resources and reduces the number of misplaced or slow-to-process payments that trigger incorrect notices.

How Paper Payments Are Causing Problems Already

This past filing season offered a glimpse of why the shift is happening. Many taxpayers who mailed payments in early April received notices in May or June claiming the IRS hadn’t yet received their money. The payment had been sent; it just hadn’t been logged.

Electronic payments, on the other hand, show up instantly with a timestamped confirmation you can save or print. That alone has prompted many tax professionals to start recommending online payments long before the IRS’s official transition.

When Paper Checks Could Stop Being Accepted

Although the IRS hasn’t published a firm cutoff for paper checks, internal discussions suggest a potential phase-out around January 2026. That means fourth-quarter estimated payments for 2025 may need to be made electronically.

Even if paper checks are temporarily allowed, they will almost certainly be processed more slowly—and with more risk of delayed posting and incorrect notices.

Why Electronic Payments Are Faster and Safer

Switching to digital payments offers clear advantages:

• Immediate confirmation you can save for your records
• Faster posting, reducing the chance of mistaken balance-due notices
• Simple identity verification and setup
• Options for bank account transfers or scheduled payments

Once you’ve created an IRS Online Account, making future payments is straightforward. Many taxpayers who switch say the setup takes only a few minutes, and far less time than addressing a notice caused by a slow-processed check.

What You Should Do Now to Prepare

Get Ahead of the 2025 Transition

This shift represents a new chapter in how taxpayers interact with the IRS. While it marks the end of the old “check in the mail” approach, digital payments provide speed, clarity, and peace of mind, something many taxpayers have wanted for years.

If you regularly mail estimated tax payments or rely on paper filing habits, now is the time to update your process. Setting up your online account before year-end means one fewer task on your plate later and a much smoother experience as the IRS moves toward a more modern, more responsive system.