Changes to TaxCaddy's Pay By Check feature

We’re updating how federal tax payments are handled in TaxCaddy to align with Executive Order 14247, which calls for payments to the federal government (“federal receipts,” including taxes) to be processed electronically
as soon as practicable
, subject to law and limited exceptions.
Changes to TaxCaddy’s Pay By Check Feature
Effective September 21, 2025, the
Pay by Check
feature for federal tax payments will be removed from TaxCaddy, subject to future Treasury guidance.

How to Pay Instead

  • Electronic options available
    :
    • IRS Direct Pay (bank account)
    • EFTPS (Electronic Federal Tax Payment System)
    • Debit/credit card processors (fees may apply)
  • State and Local Tax Payments
    : The
    Pay by Check
    feature remains available for state and local tax payments at this time.

Tracking in TaxCaddy

  • While the
    Pay by Check
    feature will no longer be available for federal tax payments, TaxCaddy can still be used to track an uploaded federal tax payment.
  • Once a federal tax payment has been made electronically, taxpayers can utilize the
    MARK AS PAID
    feature to ensure that their payment records remain up-to-date.

Pending Items in TaxCaddy

  • Any pending Standard federal tax payments previously sent to your clients will be updated to
    Online Payment
    .

FAQ

note
Refer to the official IRS website for the complete
Payments to the IRS
FAQ:
  1. Does the Executive Order apply to payments made “to” the IRS?
    Yes. The Executive Order requires federal agencies to modernize both outgoing and incoming payments. Incoming payments made to the IRS encompass all types of transactions, including payment of tax liabilities, enrolled agent fees, pre-filing agreements, and advanced pricing agreement fees. For now, checks and money orders will still be accepted. However, the IRS strongly encourages taxpayers to make payments using existing electronic options. Over time, the IRS will reduce reliance on paper checks and money orders for receiving payments, with limited exceptions made for specific situations such as those involving hardships, and/or legal and procedural requirements.
  2. How much longer will taxpayers be able to pay the IRS by check or money order?
    For now, mailed payments to the IRS, including cash, checks, and money orders, will still be accepted and processed. However, over time, the IRS will fully transition to electronic methods. The IRS will accept checks when electronic payment methods are not available for a certain transaction type or in specific situations such as those involving hardships, and/or legal and procedural requirements.
  3. What other payment options are available?
    The IRS is expanding its digital payment system capabilities to make it easier for taxpayers to pay electronically. Currently, payment options available for taxpayers and third parties for many transaction types, including debit/credit card or digital wallet, IRS Direct Pay (direct from a bank account with no fee), IRS Individual Online Account, IRS Business Tax Account, or Electronic Federal Tax Payment System (EFTPS). EFTPS payment options will be sunset for individual taxpayers in late 2026. Depending on the payment method, processing fees may apply.
    Not all transaction types are eligible for digital payment options. Taxpayers should review the correspondence they received and visit the Payment options page on IRS.gov to determine which digital payment methods are available for their specific situation.

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