Don’t Panic—Paper Checks Are Still Accepted

There has been a significant amount of “industry chatter” and confusion recently regarding FIRPTA payments in light of President Trump’s signing of Executive Order 14247 (“EO 14247”) in March of this year. With the September 30, 2025, deadline now behind us, many real estate professionals are asking: Can we still mail a check for FIRPTA withholding?

The short answer, based on current IRS guidance, is yes.

Background: What is Executive Order 14247?

Signed in March 2025, EO 14247 aims to modernize the federal government’s financial systems. Its primary goal is to promote operational efficiency by transitioning federal disbursements (money going out of the government) and receipts (money coming in) to electronic formats.

Specifically, the Order requires:

• The U.S. Department of Treasury to cease issuing paper checks for federal disbursements by September 30, 2025.

• Federal agencies to transition to Electronic Funds Transfer (EFT) methods, such as direct deposit and digital wallets, to the extent permissible by law.

You can read the full text of the Executive Order here: White House: Modernizing Payments to and from America’s Bank Account

The Confusion: Does This Apply to FIRPTA?

The confusion stems from the mandate regarding “receipts” (money paid to the government). Because FIRPTA withholding is a payment to the IRS, many assumed the September 30th deadline meant that paper checks for Forms 8288 and 8288-A would be immediately rejected.

However, the IRS has not yet published specific requirements mandating that FIRPTA withholding payments be made electronically. The infrastructure for mandating electronic payments for every specific tax type is complex, and as of now, no distinct prohibition on FIRPTA paper checks has been issued.

Key Takeaway: Existing payment methods—including mailing a cashier’s check or certified check with your FIRPTA forms—remain valid and accepted.

Real-World Scenarios: How to Handle the Uncertainty

To help you navigate conversations with clients and other agents, here are a few examples of how this applies in practice.

Scenario A: The “By-the-Book” Buyer’s Agent

• The Situation: You are closing a transaction where the seller is a foreign person. The buyer’s agent is frantic, insisting that because it is past September 30, 2025, they must wire the FIRPTA withholding to the IRS via EFTPS (Electronic Federal Tax Payment System) or the closing will be non-compliant. The settlement agent, however, is not set up to handle the buyer’s EFTPS payment on their behalf.

• The Solution: You can confidently inform the agent that while the move to electronic payments is the long-term goal of EO 14247, the IRS has not yet invalidated paper checks for FIRPTA. The settlement agent can proceed with the standard procedure: withholding the funds at closing and mailing the check with Forms 8288 and 8288-A via certified mail. This ensures the transaction closes on time without waiting for complex electronic payment registrations.

Scenario B: The Foreign Seller with No U.S. Bank Account

• The Situation: A foreign seller is disposing of a U.S. property. They are aware of the new Executive Order and are worried that if they don’t pay electronically, the IRS will reject the payment, causing them to incur penalties and interest for “late” payment.

• The Solution: Educate the seller that the immediate hard mandate in the EO applies largely to the Treasury sending money (disbursements), not necessarily receiving it for every specific tax type yet. Explain that until the IRS issues a specific “Revenue Procedure” or notice changing the FIRPTA instructions, the check they cut at the closing table is perfectly legal.

What Should You Do Now?

1. Stay the Course: Continue using your established, proven methods for remitting FIRPTA payments.

2. Monitor for Updates: We are closely tracking IRS announcements. If the Service issues a specific deadline for mandatory FIRPTA electronic payments, we will issue an immediate alert.

3. Reference the Order: Keep the link to EO 14247 handy for any parties who want to read the source material regarding the government’s modernization goals.