Compliance

Navigating New Rules for Paying the IRS and Getting Refunds: Electronic Payments & Paper Check Sunset

Paper checks are being phased out; here's what taxpayers need to know about switching to electronic payments and protecting refunds under Executive Order 14247.

By NomadicTax Research Team • 5-6 min read • March 14, 2026

## What's Changing Under **Executive Order 14247**, issued March 25, 2025, all federal agencies—including the IRS—must modernize how they send and receive payments. By **September 30, 2025**, paper checks for **tax refunds and federal disbursements** are being phased out. Incoming payments (your payments to IRS) are also moving toward electronic methods. ([taxpayeradvocate.irs.gov](https://www.taxpayeradvocate.irs.gov/news/tax-tips/tips-on-electronic-payment-options-available-to-taxpayers-as-the-irs-phases-out-paper-checks/2025/10/?utm_source=openai)) ## Transition Timeline - *Already effective for the 2025 tax return season (filed in 2026)*: refunds are largely direct deposited; taxpayers asked to provide routing and account numbers. Paper checks only if exception or missing info. ([irs.gov](https://www.irs.gov/publications/p15?utm_source=openai)) - *Incoming Payments*: Checks, money orders, etc., still accepted during transition; but electronic options (IRS Direct Pay, IRS Online Account, debit/credit, etc.) are preferred and will become required for most situations. ([eitc.irs.gov](https://www.eitc.irs.gov/pub/taxpros/fs-2026-02.pdf?utm_source=openai)) - *Pay by EFTPS*: Individual taxpayers can no longer enroll in EFTPS as of October 17, 2025; existing users can continue temporarily but are being encouraged to switch over. ([eitc.irs.gov](https://www.eitc.irs.gov/pub/taxpros/fs-2026-02.pdf?utm_source=openai)) ## Who Needs to Pay Attention Most - **Unbanked/underbanked** individuals: Need to consider ways to obtain a bank account or find direct deposit alternatives. Some exceptions available for hardships or special cases. ([taxpayeradvocate.irs.gov](https://www.taxpayeradvocate.irs.gov/news/nta-blog/as-the-irs-phases-out-paper-checks-vulnerable-taxpayers-must-not-be-left-behind/2025/10/?utm_source=openai)) - People living abroad or with remote locations affected by infrastructure issues. ([taxpayeradvocate.irs.gov](https://www.taxpayeradvocate.irs.gov/news/nta-blog/as-the-irs-phases-out-paper-checks-vulnerable-taxpayers-must-not-be-left-behind/2025/10/?utm_source=openai)) ## Practical Steps to Prepare - Provide your bank routing and account number **on your tax return** this year. Missing info delays refunds or forces a check, which may arrive late. - If you're currently paying by check or money order, consider switching to Direct Pay, debit card, or digital wallet where available. - Create an IRS Online Account if you haven’t—important for extended payment options and digital communication. ## Examples - **Mary** files her 2025 return in 2026 and uses direct deposit: she gets refund faster, no risk of lost check. - **Carlos** doesn’t have bank account: he may qualify for exception or be forced to accept paper check after delays; better to find a prepaid account or similar option early. **Final Thought:** The move away from paper is coming quickly. Transition now to avoid delays in refunds and smoother compliance.