Trusts & Estates and the new mandate for electronic payments–what do you do?

On March 25, 2025, President Donald Trump issued Executive Order 14247, mandating that all federal payments — including tax payments to the IRS — be made via electronic funds transfer (EFT). This directive is part of a broader initiative to modernize government payment systems and reduce reliance on paper checks.

Key dates

• Sept. 30, 2025: The IRS is mandated to cease issuing paper checks.
• As soon as practicable: All payments to the federal government — including tax payments by trusts and estates to the IRS — shall be processed electronically.

Unlike individual taxpayers that use DirectPay, Trusts and Estates utilizes a different online platform that requires registration prior to use.

What should you do now if you typically pay taxes or receive refunds at the trust level:

• Provide your tax preparer with direct deposit banking information for any potential refunds owed to the trust during the upcoming filing season
• Trusts make electronic payments using the Electronic Federal Tax Payment System (EFTPS) which requires prior registration before use. It can take 7–10 days to set up the account for EFTPS so we suggest starting the process now: https://www.eftps.gov/eftps/
• If you are unable to set up an EFTPS to remit the electronic payment, your tax preparer can have the IRS withdraw directly from the indicated bank account by making an election on the trust return. The election to directly withdraw taxes payable from the account can be used for tax due and/or quarterly estimates as desired

Oregon’s tax payment method remains unchanged, you can continue remitting payments similar to prior years as desired.

Please reach out to your tax advisor if you have any questions or concerns during this tax filing season.