I hope (against all odds) you managed to stay cool this past weekend. And that you’re braced for the week ahead — because the heat wave hitting the Midwest and parts of the Northeast is here to stay for a few more days.
Perhaps today is the day to get chummy with someone who owns a boat? (Or, if you’re the one with the boat, be prepared for some “long lost friend” outreaches this week.) 😉
And while you and I wait out the heat, here are some important updates in the tax world:
The Senate rolled out their version of Trump’s tax bill. And this latest iteration brings some significant shifts, like…
- A reduction in the SALT deduction cap (though that might still change)
- Restrictions on deducting car loan interest (only for new U.S.-built vehicles)
- A modest bump in the child tax credit
- Caps on tipped income and overtime exemptions
- A boost to the senior deduction
I’ll break it all down for you in the coming weeks in more detail — so you know what matters and what action steps you should be focused on.
My team and I care about keeping you in the loop, so you’re not left scrambling when tax law shifts. Because as any smart Southeastern Wisconsin taxpayer knows: planning ahead is everything.
So, now’s the time to review your current tax strategy. To make sure you’re not just reacting, but proactively positioning yourself. I’m happy to talk about what that looks like for your unique situation: 414-325-2040
Another (quieter) change currently unfolding: The way you pay the IRS is about to look different. The full digitization of tax payments is happening.
And while change is rarely enjoyable, the reality is this: adapting to the shift is what’s going to keep you in financial control.
So let’s unpack what’s coming, how to prepare for it, and why getting ahead of this now will save you from future frustration.
Paying the IRS is Changing: What Milwaukee Taxpayers Need to Know
“I look to the future because that’s where I’m going to spend the rest of my life.” —George Burns
Have you noticed how little paper we deal with these days? Your concert tickets are on your phone. Your bank statements live in your inbox. Even birthday cards have gone digital. And now, the federal government (including the IRS) is hopping on that trend, too.
Starting this fall (by September 30, 2025) all payments to and from the U.S. Treasury must be made electronically. So, if you’re used to writing checks to the IRS for your tax payments or waiting for a refund check to show up in your mailbox, this is going to affect you.
Because if you aren’t prepared, your next refund could be delayed (or might not show up at all). And if you try to mail in a check after that deadline, don’t be surprised when it’s returned or not processed properly, which could trigger penalties and interest.
As always, my aim is to make handling taxes as smooth as possible for my Milwaukee clients. So, in that effort, let’s get you ready for this new way of paying the IRS before the fall.
How paying the IRS is changing
This change is part of an effort by the Treasury Department to make payments more secure, fast, and cost-efficient. Because paper checks are prone to theft and loss, and they’re expensive to print and mail.
Going forward, refunds will be issued electronically — either through direct deposit, prepaid debit cards, or Treasury-approved digital payment platforms. And payments to the IRS (for balances due, estimated taxes, or other fees) will also have to be made electronically through EFT systems like IRS Direct Pay, EFTPS, credit/debit cards, or digital wallets.
Unless you fall into one of a few exception categories, paper checks won’t be an option.
What are those exception categories?
1) If you don’t have access to a bank account or a digital payment, 2) certain emergency or undue hardship disbursements, or 3) national security or law enforcement payments. Anything else is up to the Treasury Department’s discretion.
Note: These exceptions will be rare and will require documentation and approval. If you think you might qualify, it’s smart to start preparing NOW — don’t wait until August 2025 to begin the paperwork.
Otherwise, your best move is to get fully digital-payment ready before the shift happens.
How to prepare for paying the IRS digitally
Step 1: Lean into direct deposit. If your return was already processed and you didn’t provide bank information, there’s no way to retroactively add it for this refund. The IRS will mail a paper check to the address listed on your tax return. The important thing is that you have your information ready for your next filing (your bank routing number, account number, and account type).
And this change goes beyond just your taxes — Social Security, VA benefits, and other federal payments will also require electronic delivery (including benefits delivered monthly). You can update or enroll in direct deposit through the IRS, Social Security Administration, or Treasury Department websites (depending on the type of payment).
Step 2: Get comfy with paying digitally now. Familiarize yourself with systems like IRS Direct Pay and EFTPS (Electronic Federal Tax Payment System). And if you’re used to sending in quarterly estimated tax payments by check, you’ll need to switch to one of these digital systems well before Q4 of 2025.
And if you don’t have bank access, consider a prepaid debit card alternative. The Treasury plans to issue prepaid debit cards or use digital wallets. These are FDIC-insured and are safer than paper checks.
Step 3: Double-check your banking information. When a refund “bounces back” because your account was closed or changed, it sets off an IRS reprocessing review, and that delays your funds for weeks or months. Best practice: Take 5 minutes today to confirm your banking details are up to date with the IRS. If you’ve switched banks or closed an account, update your info before your next filing.
Paying the IRS will never be the same
The IRS is going totally digital — and you need to be ready for it. Take proactive steps now so you avoid as many hiccups with your refunds and payments as possible. Because when it comes to your taxes, staying in the past could cost you.
If you still rely on paper checks in your day-to-day life, this is a pretty significant transition. And the truth is, I’d much rather help you prepare now than untangle a mess with your payment or refund later on. So, if any of this feels confusing, reach out. My team and I are here for you:
414-325-2040
In your (digital) corner,
Jon Neal