On March 25, 2025, President Trump signed Executive Order 14247 titled, “Modernizing Payments To and From America’s Bank Account.” One of the main provisions within this Executive Order was that the Treasury and all federal agencies must move away from issuing and accepting paper checks. The reasons for this shift include improving fraud prevention, increasing speed of payments, and lowering process costs to the government. This change went into effect on September 30, 2025.
New Rules
As of September 30, 2025, all refunds due to taxpayers will not come in the form of a paper check. You will be required to provide your bank information to receive your refund via direct deposit. The following information will be required when the return is filed:
- Bank name
- Routing number
- Bank account number
- Account type (checking or savings)
If a taxpayer does not have a bank account, the IRS has said prepaid debit cards, digital wallets, or limited exceptions will be available. However, few details have been released on the process of these options. To prevent refund delays, it is recommended that, if possible, an unbanked taxpayer make every effort to open a U.S. bank account before filing their 2025 tax return.
Additionally, any payments owed to the federal government must be paid electronically. This includes balances due, extension payments, and estimated payments. Mailing a paper check will no longer be accepted by the IRS.
The first option for making a payment electronically is paying online at www.irs.gov/payments using a bank account, debit or credit card, or digital wallet. Currently, you are not required to create an online account through the IRS to accomplish this. You will need to provide the reason for payment (balance due, estimated tax, etc.), where you want it applied (Form 1040, Form 706, etc.), the tax year you want it applied (2025, 2026, etc.), your name, Social Security number, date of birth, and address.
The second option is to have the applicable balance due, extension payment, or estimated tax payments direct debited using the bank account information you provide to your tax professional. The amounts and bank details are submitted to the IRS when your return or your extension is e-filed through the tax preparation software. On the applicable date, your payments will be debited from your account. For example, if you owe $1,000 on your 2025 return and it is e-filed on March 22, 2026, you should expect the $1,000 to be withdrawn from your account on April 15, 2026. Similarly, if an estimated tax payment of $500 is set up for the third quarter, you should expect the $500 to be withdrawn on September 15, 2026. This option ensures taxpayers their payments are automatically made timely and accurately.
Items to Consider
With the 2025 fourth quarter estimates due on January 15, 2026, you must pay your estimate electronically. Once your payment is made, we recommend you print and/or save the confirmation for your records and provide a copy to your tax professional. It is currently unknown what will happen if a paper check is mailed to the IRS.
As the 2026 filing season is set to get underway shortly, it is also important to verify the bank information your tax professional may already have on file from a previous year. Incorrect or closed bank accounts can cause significant delays or additional issues with your refunds or processing of payments.
If you wish to discuss any of the matters in this update in more detail, please contact Danelle Stewart, Charles Marston, or William Hall or call 724-934-0344 (Cranberry Township, PA office) or 304-233-5030 (Wheeling, WV office).
