In 2004, I became a partner in our law firm. Being self-employed, I had to start paying my taxes in quarterly estimates. So, instead of writing out one check to the IRS each year, I got to do it four times. The Treasury Department required that I had to write “1040-ES” and my social security number in the memo.
Well, I now no longer have to worry about legibly cramming a bunch of information in the tiny corner of the check. On March 25, 2025, President Trump signed Executive Order 14247. Dubbed “Modernizing Payments To and From America’s Bank Account,” the Order directed the Treasury to coordinate with the Internal Revenue Service to transition to fully electronic federal payments both to and from the IRS.
The change was made to enhance security, increase efficiency, and reduce costs. According to the IRS, “paper instruments (e.g., checks and money orders) are far more likely than electronic payments to be lost, stolen, altered or delayed.” Electronic payments are posted faster, have lower processing costs, and reduce errors compared to checks or money orders.
The Order encompasses payments made by the federal government, such as tax refunds, along with payments to the federal government, including tax payments, fees and penalties from individuals, businesses and nonprofits.
The Treasury was mandated under the Order to stop issuing paper checks effective Sept. 30, 2025. So, starting on Oct. 1, 2025, the IRS no longer issued tax refunds via check. For those taxpayers without a bank account, the IRS is working with the U.S. Treasury Department, Federal Deposit Insurance Corporation, National Credit Union Association, and U.S. Bank to provide resources to help taxpayers open a free or low-cost account. In addition, they will establish alternative electronic payment methods, such as through mobile apps or prepaid debit cards.
The Order also applies to payments made to the Treasury, however, the IRS will continue to accept checks and money orders for the time being. According to its website, “the IRS strongly encourages taxpayers to make payments using existing electronic options.” Over time, paper checks will no longer be accepted, although no specific deadline was listed.
Taxpayers are encouraged to pay using ACH, a debit or credit card or digital wallet, the IRS’s Direct Pay (where funds are wired directly from a bank account with no fee), or an IRS Individual or Business Online Account. Taxpayers using the Electronic Federal Tax Payment System can only do so for 2026.
Although this policy has only recently gone into effect, a bunch of taxpayers are already experiencing significant delays in receiving their refunds.
Members of the House Ways and Means Committee sent a letter to Treasury Secretary Scott Bessent raising “additional concerns” about roughly 1.4 million IRS notices sent to filers about refund delays related to paper payment requests. This letter was a follow up to a previous letter they sent in March indicating more than 830,000 taxpayers had received such notices.
The IRS notice, known as CP53E, asks taxpayers for updated banking information to receive refund payments via direct deposit. Recipients have 30 days to provide these details to the IRS online account, or the agency will issue a paper refund after six weeks. “This matter is time sensitive and urgent as individuals and families facing delays need their tax refunds to offset the high cost of gas, food and basic necessities,” the lawmakers’ letter read.
Just a reminder, scams proliferate this time of year. The IRS never contacts taxpayers by phone or text to request banking information. If you receive such a text or phone call, do not respond.
Reg Wydeven is a partner with the Appleton-based law firm of McCarty Law LLP. He can be reached at pcbusiness@postcrescent.com.
This article originally appeared on Appleton Post-Crescent: 2025 mandate says Treasury will not issue paper checks | Column
Reporting by Reg Wydeven, For Appleton Post-Crescent / Appleton Post-Crescent
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