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)
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)
- 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)
- 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)
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)
- People living abroad or with remote locations affected by infrastructure issues. (taxpayeradvocate.irs.gov)
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.