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The IRS is moving away from paper refund checks in favor of digital payment methods to improve speed, security and cost efficiency. For the 2026 tax filing season, taxpayers are encouraged to pay (and get paid) electronically, including receiving refunds via direct deposit. The new guidelines stem from Executive Order 14247, issued by President Donald Trump in 2025.
Because the order affects how taxpayers get their tax refunds during tax filing season, the IRS recently updated its guidance. Here’s what you need to know.
What is Executive Order 14247?
Executive Order 14247, issued March 25, 2025, requires federal agencies, including the U.S. Treasury Department and the IRS, to stop issuing paper checks in favor of direct deposit, prepaid cards or other digital payment options by September 30. The decision does not only apply to payouts. It also applies to receipts – payments Americans make to the federal government, such as tax payments. The goals are to reduce fraud, improve security, increase efficiency and reduce costs.
The order has been in existence for almost a year. When did the IRS start phasing out paper checks?
The IRS has begun phasing out paper checks for tax refunds, including for individual taxpayers, effective September 30, 2025.
Why is this the first time I’m hearing about it?
The tax authorities have slowly implemented the change. This tax filing season marks the first big step.
Does this change the way I file my taxes?
No. You still file your tax return in the same way as always. The only difference is the way your refund is delivered.
How do I get my tax refund?
Most taxpayers receive their refunds electronically. Direct deposit remains the primary method the IRS uses to issue refunds, and the agency says electronic refunds are generally faster and more secure than mailed paper checks.
What should I do if I don’t have access to a bank account?
The IRS recognizes that not all taxpayers have access to traditional banking services, and the Executive Order explicitly considers unbanked and unbanked individuals. As a result, the IRS will offer alternative electronic payment options, including refunds through certain mobile payment apps and prepaid debit cards. If these options don’t work, limited exceptions that allow paper checks still apply.
What happens if I don’t provide direct deposit information with my return?
If you do not provide bank information when filing your return, the IRS will still accept and process it. However, if you need to receive a refund, it may take longer for the refund to be issued. You will receive a CP53E notice by post asking you to respond within 30 days, by providing bank details or explaining why you cannot. If you don’t respond and there are no other problems with your return, the IRS will send a paper check after six weeks.
Will the IRS contact me differently about my tax refund?
No. The IRS will not contact you by phone or text message to request bank information. For this purpose, the agency will only contact you by sending a letter via U.S. mail to your last known address. This policy is intended to protect taxpayers from scams, which often rely on unsolicited phone calls or messages claiming to be from the IRS.
One exception: if you use the Where is my refund? tool on IRS.gov, it can display messages regarding missing bank information.
Will tax refunds generally be faster or slower now?
The IRS says electronic refunds are typically faster and more secure than mailed paper checks, meaning you should receive your refund sooner if you use direct deposit or other electronic methods.
Who might still receive a paper check?
There is no formal checklist, but last year there was the Taxpayer Advocate concerns expressed about how eliminating paper checks could affect vulnerable populations. Working with external stakeholders, the Advocate has identified several groups that should qualify for electronic payment exemptions. These include unbanked taxpayers; taxpayers with religious objections to electronic payment systems; incarcerated taxpayers; taxpayers with disabilities; those with high fees or offshore bank accounts; Holders of an Individual Taxpayer Identification Number (ITIN); minority or elderly taxpayers; and victims of domestic violence.
The recommendations also include taxpayers in the cannabis industry who may face banking restrictions due to federal law, people with limited access to financial infrastructure in rural or tribal areas, and taxpayers living in designated disaster areas.
What about tax refunds for international taxpayers?
International taxpayers have long faced refund and payment issues. For now, the IRS says they should continue using existing systems to file returns, make payments and receive refunds. The agency says it is developing secure alternatives, including partnerships with international payment providers, to improve access to refunds abroad.
What about tax refunds for deceased taxpayers?
The IRS currently issues paper refund checks to deceased accounts, and that process has not changed. If changes are made in the future, the IRS says it will provide additional guidance. Until then, refunds involving deceased persons will continue under existing rules.
Does this also apply to payments made? Unpleasant the tax authorities?
Yes. The Executive Order applies not only to outgoing payments such as refunds and benefits, but also to incoming payments, including tax liabilities and fees. Checks and money orders are still accepted for now, but will be phased out over time in favor of electronic methods.
How long can I pay by cheque?
The IRS has not set a firm deadline and uses terms such as “phasing out.” Checks are still accepted if electronic options are not available for a specific transaction or if a taxpayer qualifies for an exception due to hardship or legal or procedural requirements.
What electronic payment options are there?
Taxpayers can currently pay using debit or credit cards, digital wallets, IRS Direct Pay, IRS Individual Online Accounts, IRS Business Tax Accounts and the Electronic Federal Tax Payment System (EFTPS). More information can be found on the IRS website. Depending on the payment method, processing fees may apply.
I thought EFTPS was going away?
It is. As of October 17, 2025, you will no longer be able to register for EFTPS.gov. Taxpayers who are not currently enrolled can use IRS Direct Pay or create an IRS Online Account for Individuals. Those who have already signed up can continue to use EFTPS for the time being, but are encouraged to switch as all individuals will be required to transition off EFTPS later in 2026.
Are there limits for electronic payments?
Yes. Frequency limits apply to how often debit cards, credit cards or cash can be used for certain payments. Most transactions are limited to twice a year (exceptions apply for installment agreements). You can check the limits here.
Not to sound like a broken record, but what about payments from international taxpayers?
According to the IRS, electronic fund transfers remain available and the agency is “working to expand existing services to new countries while exploring additional cross-border payment solutions to make international payments faster and more affordable.”
What about the tax benefits?
Tax practitioners can make payments on behalf of clients using electronic methods such as EFTPS or Electronic Funds Withdrawal. They can also advise customers to pay directly with options such as Direct Pay, debit or credit cards or digital wallets.
Doing so will not violate Circular 230, which governs practice at the IRS and sets ethical standards for attorneys, CPAs, enrolled agents, and other tax professionals.
Are the rules the same for companies?
Not exactly. After September 30, 2025, the IRS will begin adding direct deposit options to most types of business tax returns, allowing more businesses to receive electronic refunds. Paper refunds for businesses will be phased out over time, although checks will still be accepted if electronic options are not available or exceptions apply.
The IRS is also expanding digital payment tools to make it easier for businesses to pay electronically.
Where can I find the official guidelines and can I rely on them?
The IRS has published its own set of frequently asked questions here.
Guidance published on the IRS website, including FAQs and fact sheets, is not binding legal authority and should not be relied upon as precedent. Only guidance published in the Internal Revenue Bulletin has precedential value.
However, the IRS notes that taxpayers who reasonably and in good faith rely on these FAQs generally will not be subject to penalties allowing reasonable relief, including negligence or other accuracy-related penalties, to the extent reliance results in an underpayment of taxes.
What’s next for taxpayers?
The easiest way to ensure you have the information you need? Contact Forbes. To keep things simple, I recommend subscribing to our free tax newsletter so the information you need arrives straight to your inbox every Saturday morning.
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