IRS Refunds and Payments
The above document outlines the implementation of Executive Order 14247, which modernizes federal payment systems to enhance security and efficiency.
Executive Order 14247, signed on March 25, 2025, mandates the transition to fully electronic federal payments to and from the IRS.
The initiative aims to combat financial fraud, reduce costs, and improve the security and efficiency of federal transactions by phasing out paper instruments like checks and money orders.
The transition affects both disbursements from the federal government (e.g., tax refunds) and payments to the federal government (e.g., tax liabilities).
Changes to Refunds and Disbursements
As of September 30, 2025, the IRS will stop issuing paper refund checks, with exceptions for specific circumstances.
Taxpayers are encouraged to provide direct deposit information to expedite refunds, as electronic payments are faster and more secure.
Alternative electronic payment methods will be available for individuals without bank accounts, including prepaid debit cards and mobile apps.
Taxpayers should ensure their direct deposit information is current and monitor IRS.gov for updates on electronic payment options.
Payments to the IRS
The Executive Order also applies to payments made to the IRS, which will continue to accept checks and money orders temporarily.
The IRS encourages the use of electronic payment methods, such as debit/credit cards, IRS Direct Pay, and the IRS Online Account.
The Electronic Federal Tax Payment System (EFTPS) will be phased out for individual taxpayers by late 2026, with a transition to IRS Online Account or Direct Pay recommended.
Business Payments and Refunds
Businesses will also see a shift towards electronic refunds, with direct deposit options being added for most business tax returns.
Payment options for businesses include debit/credit cards, IRS Direct Pay, and the IRS Business Tax Account, with expanded digital capabilities planned.
International Taxpayers
International taxpayers will continue to use existing methods for filing and payments, with the IRS developing secure alternatives for refunds abroad.
Wire transfers remain available, and the IRS is exploring additional cross-border payment solutions.
Support for Third-party Stakeholders
Third-party stakeholders, such as payroll providers and trustees, will be expected to adopt electronic payment methods.
The IRS will provide guidance and resources to assist these stakeholders in adapting to the new payment systems.
The EFTPS Batch Provider tool is available for third parties to make multiple federal tax payments on behalf of clients.
© 2026 Bishop & Adkins, P.A. All Rights Reserved.