IRS to phase out paper checks by end of September

The Internal Revenue Service, the Treasury Department and other parts of the federal government plan to phase out the use of paper checks for payments by the end of this month, in keeping with an order from President Trump.

In March, Trump signed an executive order saying the continued use of paper-based payments by the federal government, including  checks and money orders, imposes unnecessary costs and delays, and the risk of fraud, theft and lost payments. In August, the Treasury Department announced it would stop issuing paper checks for most federal payments on Sept. 30. 

“Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action,” said Treasury Secretary Scott Bessent in a statement. “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.”

The Alcohol and Tobacco Tax and Trade Bureau also made an announcement last week about the Sept. 30 cutoff date.

The Treasury Department issued instructions for those who are still receiving paper check for Social Security, Veterans benefits, or any other federal benefit, encouraging people to enroll in direct deposit using one of the following options:

• Call the Federal agency that pays your benefits and follow their instructions for enrolling in direct deposit. A list of the paying agencies’ contact information can be found here.
• Enrolling online at GoDirect.gov
• Call the Electronic Payment Solution Center at 800-967-6857, Monday – Friday 9:00 a.m.-7:00 p.m. ET