On March 25, 2025, President Trump signed Executive Order 14247, Modernizing Payments To and From America’s Bank Account, directing the U.S. Department of the Treasury to discontinue the issuance of paper checks for federal payments—including tax refunds—effective September 30, 2025. The order further requires that, as soon as practicable and to the extent permitted by law, all payments made to the federal government be submitted electronically. While limited exceptions may be granted where electronic methods are not feasible, no formal guidance has yet been issued by the Treasury.
We expect additional guidance to be issued between now and the effective date of this order that will hopefully provide more clarity on the requirements and exceptions that will be available.
In the meantime…..
We recommend that taxpayers expecting refunds consider including their bank account information with their tax filings to facilitate direct deposit. Although alternative payment methods may be introduced for individuals without U.S. bank accounts, such as prepaid debit cards or digital wallets, further clarification is pending.
Additionally, while the order does not specify when the IRS must stop accepting paper checks for payments, taxpayers should prepare for this eventuality.
We recognize that this transition may pose challenges for certain taxpayers and will continue to monitor developments. Please contact your BRC tax advisor with any questions or concerns regarding how this change may affect your future filings.
We will share updates as additional guidance becomes available.
The information contained in this article is for informative purposes only and should not be relied on when making any business, legal, or other decisions. This information may be updated without notice and/or may not contain the most current information that is available related to this topic.