The president issued an executive order in March 2025 that discontinued the use of paper checks by the federal government for both disbursements and receipts, including taxpayer tax payments and refunds. The Executive Order 14247, “Modernizing Payments To and From America’s Bank Account,” ordered the Secretary of the Treasury to plan to cease issuing checks for most federal disbursements, including tax refunds, effective Sept. 30, 2025.
The order wasn’t specific about the timing for eliminating the acceptance of paper checks by the federal government. It stated that, “As soon as practicable, and to the extent permitted by law, all payments made to the federal government shall be processed electronically … ” The order made certain exceptions, including taxpayers who don’t have access to banking services or electronic payment systems.
Recent IRS guidance still allows payment by check via mail
In an FAQ document updated on Jan. 27, 2026, the IRS stated that “For now, mailed payments to the IRS, including cash, checks, and money orders, will still be accepted and processed.” The FAQ further provides that, “over time, the IRS will fully transition to electronic methods.” Based on this language, it’s apparent that, while paper checks may still be accepted when electronic payment methods aren’t available or in specific hardship situations, the sooner taxpayers can transition to the use of electronic payment options with the federal government, the less likely that difficulty with making payments will be. Paper checks have always been at risk of loss in transit or misprocessing at the IRS. Electronic systems provide faster, more secure transfer of funds and more accurate tracking of transactions.
Refunds by check will be delayed
Taxpayers who expect to receive refunds from the IRS may experience significant delays if they don’t provide direct deposit information in their tax returns. Taxpayers filing such returns will receive a series of notices. If the taxpayer responds to those notices with the required information, the refund will be released “immediately, via direct deposit or paper check.” If the taxpayer doesn’t respond, the refund will be released as a paper check after six weeks. Utilizing direct deposit is both more secure than paper checks and the fastest way for taxpayers to receive their refunds.
Several electronic options are available for taxpayers to make payments
The IRS lists several payment options on its website that can eliminate the need for a paper check. On Jan. 26, 2026, a release from the IRS notes that to avoid delays, taxpayers should use existing electronic payment options such as:
- IRS direct pay for individuals to pay directly from a bank account without fees.
- An Electronic Federal Tax Payment System (EFTPS) account for business tax payments.
- Taxpayer IRS online accounts with an ID.me sign-in allowing secure login.
- Same-day wire transfers from financial institutions.
- Debit/credit card payment options or digital wallets when supported.
Affected taxpayers with concerns about how to manage electronic payments and refunds with the IRS should contact their tax advisors to learn more about the best options for their specific facts and circumstances.
