Federal E-Payment Compliance

close up of pen on paper check

The U.S. federal government is phasing out paper checks by September 30, 2025, as mandated by an executive order to streamline payments and reduce costs. This shift to electronic transactions impacts millions of taxpayers, businesses, and financial professionals.

For organizations and individuals navigating this transition, Cove Professional Services offers tailored solutions to ensure compliance, optimize efficiency, and mitigate risks. In this blog, we’ll break down the mandate’s implications, explore related tax and retirement updates, and explain how partnering with Cove can simplify this transition for your practice or business.

Section 1: Understanding the Federal Electronic Payment Mandate

What’s Changing?

The federal government will no longer issue paper checks for:

  • Tax refunds
  • Social Security benefits
  • Federal wages
  • Veteran benefits
  • Other disbursements

Similarly, payments to the government (e.g., taxes, fines, fees) must be made electronically where legally permissible.

Why This Matters?

  • Faster Access to Funds: Electronic payments reduce processing delays.
  • Cost Savings: The Treasury estimates $500M+ in annual savings.
  • Exceptions: Limited to unbanked individuals, emergency payments, and law enforcement.

How Cove Professional Services Can Help?

  • Transition Support: Our team guides clients through setting up direct deposit, IRS Direct Pay, and EFTPS enrollment.
  • Compliance Checks: We identify exemptions and ensure adherence to federal requirements.
  • Client Education: Cove provides customizable templates to inform stakeholders about the mandate.

Stay ahead of the curve—schedule a consultation today to learn how Cove can streamline the accounting and compliance of your business.