IRS to Eliminate Use of Paper Checks for Tax Refunds as of September 30, 2025

On March 25, 2025, President Trump signed Executive Order 14247 entitled “Modernizing Payments To and From America’s Bank Account” which instructed the Treasury to cease issuing and receiving paper checks. Therefore, items such as benefit payments and tax refunds/payments will be made electronically. 

Executive Order requirement for tax refunds

With limited exceptions, the Executive Order requires the government to process all tax refunds electronically after September 30, 2025.

Scott Bessent, Secretary of the Treasury, said that reducing paper checks will help reduce fraud, theft, and delays in receiving payments.  Many taxpayers already receive their tax refunds via direct deposit and will remain unaffected. However, for taxpayers who have historically received their tax refunds via check, they will now be required to receive their tax refunds electronically via direct deposit. 

In an announcement on August 14, 2025, the Treasury recommended that those taxpayers without a bank account receive a direct deposit to open an account at FDIC: GetBanked or MyCreditUnion.gov. 

Exceptions to the electronic payment rule under the Executive Order include:

• Individuals who do not have access to banking services or electronic payment systems;
• Certain emergency payments where electronic disbursement would cause undue hardship, as contemplated in 31 C.F.R. Part 208;
• National security- or law enforcement-related activities where non-EFT transactions are necessary or desirable; and
• Other circumstances as determined by the Secretary of the Treasury, as reflected in regulations or other guidance.

Alternative payment options will be available to the above individuals or entities, however the Treasury has yet to issue any guidance related to these alternative payment options.

Executive Order requirement for tax payments

The Executive Order also requires tax payments, such as amounts due on a return, estimates, or extension payments, to be paid electronically as well.

However, the Executive Order only provides that these payments be converted to electronic “as soon as practicable, and to the extent permitted by law”; therefore, there is no deadline for the Treasury to mandate electronic payments made to the Treasury, so paper checks are still acceptable for the time being.

Prepare for immediate and forthcoming changes

Taxpayers should be prepared to provide the necessary banking information to receive their refunds via direct deposit after September 30, 2025.  While not yet required, be on the lookout for changes in the way payments will be made to the IRS in the future.

If you have any questions on how this may impact you, please contact your UHY tax professional.