On March 25, 2025, President Trump signed Executive Order 14247, Modernizing Payments To and From America’s Bank Account, requiring federal payments to transition away from paper checks. The order applies to both individual and business taxpayers and mandates the use of electronic tax refunds and electronic payments to the IRS. These changes mark a major modernization of how taxpayers receive refunds and submit tax payments.
Electronic Payments from the IRS
Effective September 30, 2025, the Executive Order requires the U.S. Department of the Treasury to discontinue the issuance of paper checks for federal payments, including tax refunds, in favor of electronic payment methods. As a result, the IRS urges all taxpayers expecting a refund to include checking or savings account details on their 2025 returns filed in 2026.
The IRS has indicated that taxpayers who omit bank account details will receive letters from them with instructions on next steps. Taxpayers will be able to log in or create accounts at irs.gov/payments, to provide banking information. Alternatively, if a taxpayer believes they should be exempt from accepting electronic payments, a dedicated phone line will allow taxpayers to explain why they believe they qualify for an exemption. The IRS has not released a list of exceptions at this time. For security reasons, IRS agents will not accept bank account details over the phone.
For taxpayers without bank accounts, the IRS is exploring other electronic options, including reloadable debit cards, accounts associated with digital payments, and digital wallets.
Electronic Payments to the IRS
The executive order also requires all payments to the IRS, including extension payments, estimated tax payments, and balances due, be made electronically “as soon as practicable.” While no official implementation date has been announced, the IRS strongly encourages taxpayers to use existing electronic payment options to avoid delays.
For extensions and amounts due with tax returns, banking information can be included with the electronic filing of the extension or return. For all other types of payments, including estimated tax payments, taxpayers can make online payments, either via their IRS online accounts or without creating an account by visiting irs.gov/payments. Taxpayers can then select “Direct Pay with bank account,” if they prefer to pay with a checking or savings account with no additional fees, or “Pay by card or digital wallet,” if they prefer to pay with a debit or credit card or digital wallet for which processing fees apply.
To minimize delays, reduce the risk of lost payments, and to prepare for the eventuality of electronic payments being required, BRC strongly recommends taxpayers make as many payments electronically as possible, even before it becomes mandatory.
The IRS has indicated that they will be publishing additional guidance prior to the opening of the 2026 tax filing season. We will share updates as additional guidance becomes available.