September 2, 2025 • 17 mins
Today we’re talking about a major change in how the federal government pays you—and how you pay the government. Under a new modernization order and Treasury rules, most paper checks are going away. By September 30, 2025, federal benefit payments, vendor payments, and many refunds must be electronic, and your payments to the government will have to be electronic too.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:31):
Well, good afternoon, Michiganders, and welcome back to Tuesday with
Tom Michigan's Only podcast where we talk about a state planning,
it's state settlement and everything in between. As always, I'm
your host, Tom Doyle, a state planning attorney, lifelong Michigander
and your guide to planning for your future. Well, a
(00:55):
quick review of last episode, How do I use a
will or trust to change a beneficiary designation? If you've
got beneficiary designations perhaps on life insurance policies or bank
accounts or investment accounts, and you want to know how
you can use a will or trust to change those
(01:18):
beneficiary designations, or to find out if you can even
use a will or trust to change those beneficiary designations,
I invite you please please listen to last week's episode. Well,
today's show. Today, we're talking about a change that's going
(01:39):
to affect just about everyone who's out there listening, whether
you're an individual getting Social Security or maybe a small
business owner or even a trustee managing in a state.
And that is the federal government is phasing out paper checks.
That's right after September twenty twenty five, only less than
(02:03):
a month away. Now, most payments from and to the
federal government will now have to be electronics. So let's
break down what's happening. Let's talk a little bit why
it's happening, and what you need to do to get ready.
But please remember what I'm about to discuss is, as
(02:25):
always for educational purposes only. It is not intended to
be legal advice. You need to work with your attorney
to determine what is appropriate for you and your estate plan.
(02:50):
Goodbye paper checks. What the new federal ePayments mandate is
going to mean for you? Well, a background, let's start
with that. Okay, So for decades, the federal government has
actually required electronic payments where possible. That rule is found
(03:14):
in the United States Code and in Treasury regulations. But
for years there have been exceptions paper checks for certain payments, benefits,
tax refunds, special cases. But in March of this year,
President Biden issued an executive order. I guess that would
(03:36):
be March of last year, not this year. President Biden
issued in an executive order, and that order directed the
Treasury to modernize all payments, both payments from the government
like benefits and refunds, and payments to the government like
(03:56):
taxes in fees, and the reasoning pretty straight forward. Paper
checks are expensive, they can be lost or stolen, and
they delay payments. So electronic payments are faster, safer, and
cheaper for taxpayers. So what's changing, Well, let's start with
(04:17):
what's changing for individuals. If you receive Social Security, Veterans
benefits or railroad retirement checks, you now need to set
up direct deposit or get signed up for the Direct
Express debit card. So if you've been receiving those paper
(04:38):
checks for those benefits again, Social Security Veterans benefits, railroad
retirement checks, if you've been receiving those, those checks are
going to stop after September thirtieth, twenty twenty five. Also,
tax refunds starting this upcoming filing season about April of
(05:00):
the next year. We're marching towards the end of twenty
twenty five. You're going to be having your tax returns
prepared for you, and if you're expecting a refund, there
is not going to be a paper refund check. That
means when you file that twenty twenty five return, you
will need to have direct deposit information ready. The IRS
(05:25):
is not going to send out paper refund checks except
in very narrow circumstances. And what if you owe money,
so you've got your income tax return prepared in your
own money, or let's say you still have another payment
to make with estimated tax payments for this tax year. Well,
(05:46):
the IRS is moving fully again to an electronic system
as well, so you as an individual will need to
use IRS Direct Pay. So individuals are going to have
to use IRS Direct Pay to make those payments. Businesses
(06:06):
will continue to use the EFTPS, that's the Electronic Federal
Tax Payment System, but the deadline is still the same
September thirtieth, twenty twenty five. So that's if you're going
to be making payments to the government. What about businesses
(06:27):
and nonprofits, Well, if you contract with the government or
receive federal grants from the federal government, your payments are
going to become are only going to come by automated
clearing house transfers ACCH for sure. No more payper checks
(06:49):
in the mail. So you'll need to make sure your
banking information is up to date in sam dot gov
as well as in any agency vendor portal that you
use for tax purposes too. Now, businesses, perhaps you're making
payroll tax deposits and business tax payments. You're going to
(07:12):
have to use the EFTPS system, and if you're not
already set up, get registered now and make sure your
bookkeeping in payroll software is aligned with the ACCH reporting
so you don't run into problems at the time. Perhaps
you're using an online payroll system and you're using that
(07:35):
to automatically generate checks to make your payments, you're going
to have to make sure that those are converted or
will give you the ability to use ACCH reporting, which
will be electronic payments of your taxes that become due. Well,
(07:58):
what about estates, trust or other fiduciary as well. This
is probably where it might actually get relevant to many
of the listeners aside from everything that we've talked about already,
But if you're serving as a trustee or perhaps a
personal representative an estate or a conservator for a disabled individual,
(08:23):
you also need to prepare for electronic refunds and deposits.
So estates and trusts that file at ten forty one
and are due a refund are no longer going to
receive a paper check. Those refunds will need to go
directly into your fiduciary account. That you control. You also
(08:47):
need to make sure, of course, that that account is
properly documented to receive those payments and to provide you
appropriate court account for conservatorship. Same rules apply. Set up
an electronic account. You probably already have to have a
(09:09):
court approved account. Make sure that the account that is
going to receive the electronic payments is one that is
court approved, and make sure any benefit payments are flowing
directly into it. Remember, this isn't just an administrative change,
It has fiduciary consequences. Courts expect you, obviously to handle
(09:34):
these ones properly and to document the transition. Now, are
there exceptions? Yes, there are, but they are very limited.
Treasury and individual agencies can grant waivers in very rare cases,
for example where someone truly has no access to banking
(09:58):
services or electric on systems, But obviously for the vast
majority of people and businesses, you should not expect to
qualify for a waiver. Essentially, the message from Treasury is clear,
paper checks are ending. So what should you do right now? Well,
(10:21):
if you're an individual, enroll and direct deposit with your
agency or get direct express card. Make sure your banking
info is accurate, create an IRS online account so you
can use direct pay when time comes. If you're a
business or nonprofit, log into your SAM dot gov account,
(10:42):
confirm your banking details if you need to register for
EFTPS so you can make electronic payments to the government.
And again, if you're a trustee or an executor, make
sure you have a fiduciary bank account set up that
can receive directly deposits and make sure that your tax
(11:03):
filings reflect that account for any refunds, and don't forget
to document the change for your annual accountings. And message
for everyone everyone, be careful, be careful about scams. Whenever
changes come about, people are going to be out there
(11:25):
trying to scam you. They're going to be trying to
get you to give them your bank information. So only
update your information through official government sites like SSA dot gov,
i RS dot gov, VA dot gov, or SAM dot com.
(11:46):
So only up your date your information through official sites. Remember,
the government is never going to call you out of
the blue asking for your bank information. So if you
get a call from somebody who says, hey, you know,
at the end of September you need to set things
up with your program and we'll assist you to do that.
All you have to do is give us your bank
(12:07):
account information and you'll make sure everything's set up. That
that red flag clearly is a scam, so again, only
update your information through official websites. The bottom line is
this paper checks from Uncle Sam are going away, and
(12:31):
by September thirty, if that's less than thirty days away,
if you haven't made the switch to electronic payments, you
could face delays or maybe even miss out on money
that you're entitled to. So take your action now. Check
your benefit accounts, update your bank accounts, update your bank details,
(12:53):
set up EFTPS or direct pay, and if your fuduciary again,
make sure your court approved counts are ready to go.
To help get you ready for the epayment mandate, check
out our free checklist that you will find in the
(13:13):
Companion blog post to this podcast, and that will be
available at Tuesday with Tom dot com. Now, of course,
(13:49):
Amanda and I can't really set up your payments to
the federal government. That's something that you're gonna have to
do with your bank or online and get that all
squared away, although we might be able to give you
assistance online if you want to meet with us, but again,
only want to work with approved government websites. But of
course we would also be honored to help you protect
(14:12):
the ones you love, whether that means creating a brand
new estate plan for you, or updating in a state
plan that you already have for you, or guiding you
through the estate settlement process if you're dealing with someone's
estate who has died, we try and make it easy
(14:35):
and convenient for you to get started. We offer in
person appointments both in Grand Rapids and lancing, virtual consultations
by zoom or phone wherever you are in Michigan. And
remember too, you can always go to the Legal Store
on our website if you only just need one document.
(14:56):
Maybe all you need is a new healthcare power of
attorney or an new certificate of trust. Just take a
look at the Legal Store and there you're going to
find information on how you can order individual legal documents
twenty four to seven through our Legal Store. All of that,
all of that at more is available at doylelopc dot com.
(15:18):
So please visit doylelopc dot com to learn more and
to schedule your consultation today. Well, I think that's going
(15:40):
to be a wrap for today's show. As always, though,
if you have a comment about the program, a question
you'd like to have answered, or a topic you'd like
to have me cover in a future episode, head on
over to Tuesday with Tom dot com. You can leave
me a voice message by clicking the microphone or just
send me an email and that would be Tom at
(16:01):
Tuesday with Tom dot com. And please remember follow us
on Facebook invite your family and friends to do the same.
That would be Tuesday with Tom And of course the
office on Facebook is Doyle LAWPC. And don't forget subscribe
to our email list at Tuesday with Tom dot com
or at Doyle LAWPC dot com. And remember too, you
(16:27):
can listen to this program wherever you enjoy. Your podcast
run many services such as Apple Podcasts, Spotify, Amazon Music,
Google Podcast, iHeartRadio, Speaker and you can always ask your
smart speaker to play Tuesday with Tom. Well, thanks again
(16:51):
for spending part of your day with us, and as always,
I hope you have an awesome day and an awesome
week in Michigan. Stay safe. Tuesday with Tom has been
brought to you by the estate planning attorneys at Doyle
(17:11):
Law PC to learn how we can help you with
your estate plan or with settling a loved one's estate.
Please call us today at five one seven three two
three seven three sixty six. That's five one seven three
two three seven three sixty six.
Well, good afternoon, Michiganders, and welcome back to Tuesday with
Tom Michigan's Only podcast where we talk about a state planning,
it's state settlement and everything in between. As always, I'm
your host, Tom Doyle, a state planning attorney, lifelong Michigander
and your guide to planning for your future. Well, a
(00:55):
quick review of last episode, How do I use a
will or trust to change a beneficiary designation? If you've
got beneficiary designations perhaps on life insurance policies or bank
accounts or investment accounts, and you want to know how
you can use a will or trust to change those
(01:18):
beneficiary designations, or to find out if you can even
use a will or trust to change those beneficiary designations,
I invite you please please listen to last week's episode. Well,
today's show. Today, we're talking about a change that's going
(01:39):
to affect just about everyone who's out there listening, whether
you're an individual getting Social Security or maybe a small
business owner or even a trustee managing in a state.
And that is the federal government is phasing out paper checks.
That's right after September twenty twenty five, only less than
(02:03):
a month away. Now, most payments from and to the
federal government will now have to be electronics. So let's
break down what's happening. Let's talk a little bit why
it's happening, and what you need to do to get ready.
But please remember what I'm about to discuss is, as
(02:25):
always for educational purposes only. It is not intended to
be legal advice. You need to work with your attorney
to determine what is appropriate for you and your estate plan.
(02:50):
Goodbye paper checks. What the new federal ePayments mandate is
going to mean for you? Well, a background, let's start
with that. Okay, So for decades, the federal government has
actually required electronic payments where possible. That rule is found
(03:14):
in the United States Code and in Treasury regulations. But
for years there have been exceptions paper checks for certain payments, benefits,
tax refunds, special cases. But in March of this year,
President Biden issued an executive order. I guess that would
(03:36):
be March of last year, not this year. President Biden
issued in an executive order, and that order directed the
Treasury to modernize all payments, both payments from the government
like benefits and refunds, and payments to the government like
(03:56):
taxes in fees, and the reasoning pretty straight forward. Paper
checks are expensive, they can be lost or stolen, and
they delay payments. So electronic payments are faster, safer, and
cheaper for taxpayers. So what's changing, Well, let's start with
(04:17):
what's changing for individuals. If you receive Social Security, Veterans
benefits or railroad retirement checks, you now need to set
up direct deposit or get signed up for the Direct
Express debit card. So if you've been receiving those paper
(04:38):
checks for those benefits again, Social Security Veterans benefits, railroad
retirement checks, if you've been receiving those, those checks are
going to stop after September thirtieth, twenty twenty five. Also,
tax refunds starting this upcoming filing season about April of
(05:00):
the next year. We're marching towards the end of twenty
twenty five. You're going to be having your tax returns
prepared for you, and if you're expecting a refund, there
is not going to be a paper refund check. That
means when you file that twenty twenty five return, you
will need to have direct deposit information ready. The IRS
(05:25):
is not going to send out paper refund checks except
in very narrow circumstances. And what if you owe money,
so you've got your income tax return prepared in your
own money, or let's say you still have another payment
to make with estimated tax payments for this tax year. Well,
(05:46):
the IRS is moving fully again to an electronic system
as well, so you as an individual will need to
use IRS Direct Pay. So individuals are going to have
to use IRS Direct Pay to make those payments. Businesses
(06:06):
will continue to use the EFTPS, that's the Electronic Federal
Tax Payment System, but the deadline is still the same
September thirtieth, twenty twenty five. So that's if you're going
to be making payments to the government. What about businesses
(06:27):
and nonprofits, Well, if you contract with the government or
receive federal grants from the federal government, your payments are
going to become are only going to come by automated
clearing house transfers ACCH for sure. No more payper checks
(06:49):
in the mail. So you'll need to make sure your
banking information is up to date in sam dot gov
as well as in any agency vendor portal that you
use for tax purposes too. Now, businesses, perhaps you're making
payroll tax deposits and business tax payments. You're going to
(07:12):
have to use the EFTPS system, and if you're not
already set up, get registered now and make sure your
bookkeeping in payroll software is aligned with the ACCH reporting
so you don't run into problems at the time. Perhaps
you're using an online payroll system and you're using that
(07:35):
to automatically generate checks to make your payments, you're going
to have to make sure that those are converted or
will give you the ability to use ACCH reporting, which
will be electronic payments of your taxes that become due. Well,
(07:58):
what about estates, trust or other fiduciary as well. This
is probably where it might actually get relevant to many
of the listeners aside from everything that we've talked about already,
But if you're serving as a trustee or perhaps a
personal representative an estate or a conservator for a disabled individual,
(08:23):
you also need to prepare for electronic refunds and deposits.
So estates and trusts that file at ten forty one
and are due a refund are no longer going to
receive a paper check. Those refunds will need to go
directly into your fiduciary account. That you control. You also
(08:47):
need to make sure, of course, that that account is
properly documented to receive those payments and to provide you
appropriate court account for conservatorship. Same rules apply. Set up
an electronic account. You probably already have to have a
(09:09):
court approved account. Make sure that the account that is
going to receive the electronic payments is one that is
court approved, and make sure any benefit payments are flowing
directly into it. Remember, this isn't just an administrative change,
It has fiduciary consequences. Courts expect you, obviously to handle
(09:34):
these ones properly and to document the transition. Now, are
there exceptions? Yes, there are, but they are very limited.
Treasury and individual agencies can grant waivers in very rare cases,
for example where someone truly has no access to banking
(09:58):
services or electric on systems, But obviously for the vast
majority of people and businesses, you should not expect to
qualify for a waiver. Essentially, the message from Treasury is clear,
paper checks are ending. So what should you do right now? Well,
(10:21):
if you're an individual, enroll and direct deposit with your
agency or get direct express card. Make sure your banking
info is accurate, create an IRS online account so you
can use direct pay when time comes. If you're a
business or nonprofit, log into your SAM dot gov account,
(10:42):
confirm your banking details if you need to register for
EFTPS so you can make electronic payments to the government.
And again, if you're a trustee or an executor, make
sure you have a fiduciary bank account set up that
can receive directly deposits and make sure that your tax
(11:03):
filings reflect that account for any refunds, and don't forget
to document the change for your annual accountings. And message
for everyone everyone, be careful, be careful about scams. Whenever
changes come about, people are going to be out there
(11:25):
trying to scam you. They're going to be trying to
get you to give them your bank information. So only
update your information through official government sites like SSA dot gov,
i RS dot gov, VA dot gov, or SAM dot com.
(11:46):
So only up your date your information through official sites. Remember,
the government is never going to call you out of
the blue asking for your bank information. So if you
get a call from somebody who says, hey, you know,
at the end of September you need to set things
up with your program and we'll assist you to do that.
All you have to do is give us your bank
(12:07):
account information and you'll make sure everything's set up. That
that red flag clearly is a scam, so again, only
update your information through official websites. The bottom line is
this paper checks from Uncle Sam are going away, and
(12:31):
by September thirty, if that's less than thirty days away,
if you haven't made the switch to electronic payments, you
could face delays or maybe even miss out on money
that you're entitled to. So take your action now. Check
your benefit accounts, update your bank accounts, update your bank details,
(12:53):
set up EFTPS or direct pay, and if your fuduciary again,
make sure your court approved counts are ready to go.
To help get you ready for the epayment mandate, check
out our free checklist that you will find in the
(13:13):
Companion blog post to this podcast, and that will be
available at Tuesday with Tom dot com. Now, of course,
(13:49):
Amanda and I can't really set up your payments to
the federal government. That's something that you're gonna have to
do with your bank or online and get that all
squared away, although we might be able to give you
assistance online if you want to meet with us, but again,
only want to work with approved government websites. But of
course we would also be honored to help you protect
(14:12):
the ones you love, whether that means creating a brand
new estate plan for you, or updating in a state
plan that you already have for you, or guiding you
through the estate settlement process if you're dealing with someone's
estate who has died, we try and make it easy
(14:35):
and convenient for you to get started. We offer in
person appointments both in Grand Rapids and lancing, virtual consultations
by zoom or phone wherever you are in Michigan. And
remember too, you can always go to the Legal Store
on our website if you only just need one document.
(14:56):
Maybe all you need is a new healthcare power of
attorney or an new certificate of trust. Just take a
look at the Legal Store and there you're going to
find information on how you can order individual legal documents
twenty four to seven through our Legal Store. All of that,
all of that at more is available at doylelopc dot com.
(15:18):
So please visit doylelopc dot com to learn more and
to schedule your consultation today. Well, I think that's going
(15:40):
to be a wrap for today's show. As always, though,
if you have a comment about the program, a question
you'd like to have answered, or a topic you'd like
to have me cover in a future episode, head on
over to Tuesday with Tom dot com. You can leave
me a voice message by clicking the microphone or just
send me an email and that would be Tom at
(16:01):
Tuesday with Tom dot com. And please remember follow us
on Facebook invite your family and friends to do the same.
That would be Tuesday with Tom And of course the
office on Facebook is Doyle LAWPC. And don't forget subscribe
to our email list at Tuesday with Tom dot com
or at Doyle LAWPC dot com. And remember too, you
(16:27):
can listen to this program wherever you enjoy. Your podcast
run many services such as Apple Podcasts, Spotify, Amazon Music,
Google Podcast, iHeartRadio, Speaker and you can always ask your
smart speaker to play Tuesday with Tom. Well, thanks again
(16:51):
for spending part of your day with us, and as always,
I hope you have an awesome day and an awesome
week in Michigan. Stay safe. Tuesday with Tom has been
brought to you by the estate planning attorneys at Doyle
(17:11):
Law PC to learn how we can help you with
your estate plan or with settling a loved one's estate.
Please call us today at five one seven three two
three seven three sixty six. That's five one seven three
two three seven three sixty six.
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