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On March 25, 2025, President Trump issued Executive Order 14247, which mandates a significant shift in how federal payments, including tax refunds and payments to the IRS, are processed. Effective September 30, 2025, nearly all transactions with the federal government, including the IRS, must be conducted electronically, phasing out paper checks.
The order requires that all federal disbursements — such as tax refunds, Social Security benefits and veterans benefits — be made electronically. Likewise, all payments to the government, such as taxes, fees and fines, will need to be made electronically as well.
Limited exceptions may apply, such as for individuals without access to banking services, emergency situations and specific national security needs. However, the IRS hasn’t yet finalized these exemptions, so preparation is critical.
On September 23, 2025, the IRS issued a news release, which provides limited insight into how the IRS may replace paper refund checks. The release indicates that the Department of the Treasury, or possibly third-party processors, may start issuing prepaid debit cards to individuals for whom the IRS doesn’t have banking information. The details related to this process are still yet to be determined.
If you receive tax refunds as an individual, you’ll need to transition to electronic methods.
In the same news release, the IRS merely confirmed that the executive order also applies to payments. However, it stated that “taxpayers should continue to use existing payment options until further notice.”
“Existing payment options” include paying via IRS Direct Pay with a bank account, paying by debit card or credit card, paying from the taxpayer’s online account, paying via EFTPS, paying via check or money order, and paying via electronic funds withdrawal when the return is e-filed.
For both refunds and payments, the IRS stated it will publish detailed guidance for 2025 tax returns before the 2026 filing season begins.
As your trusted partner, our team is ready to guide you through these changes as we keep you informed with the latest updates from the Department of the Treasury and IRS. If you aren’t yet a client, please schedule a call to learn how we can help you analyze your estimated tax situation and complete your year-end tax planning.
