Starting September 30, 2025, all FIRPTA payments must be made electronically through EFTPS; paper checks will no longer be accepted.

Here's a breakdown of what that means:

• Electronic payments are mandatory: You can no longer use paper checks to satisfy FIRPTA withholding requirements after September 30, 2025.
• EFTPS is required: If you're a buyer responsible for withholding under FIRPTA, you'll need to set up an EFTPS account if you haven't already.
• Plan ahead: Enrollment in EFTPS takes time, requiring a Taxpayer Identification Number (TIN) and a U.S. mailing address to receive a PIN. Some individuals and entities, particularly foreign persons, might face challenges with this process due to potential delays in receiving the PIN or navigating the system.
• Payment deadline still applies: FIRPTA payments must still be submitted within 20 days of the closing date, regardless of the electronic payment requirement. Failure to meet this deadline (even due to EFTPS enrollment delays) can result in penalties and interest.

Important notes:

This change is driven by an executive order requiring the Treasury to transition to electronic payments. While closing agents may assist with FIRPTA, buyers and sellers remain responsible for ensuring proper compliance and timely electronic payment. EFTPS (.gov) is the official website for EFTPS enrollment and payments.