With a goal of promoting operational efficiency and defending against fraud, the president signed Executive Order 14247 “Modernizing Payments to and from America's Bank Account” on March 25, 2025.
As of September 30, 2025, to the extent permitted by law, the U.S. Department of the Treasury (the Treasury) will no longer issue paper checks for all Federal disbursements, including tax refunds. Additionally, all payments made to the federal government, including tax payments, will be processed electronically rather than by check, as soon as practicable.
What To Know About EO 14247 Now
Changes to Issued Payments
The Treasury announced on August 14, 2025, that the “federal government will stop issuing paper checks for most federal payments on September 30, 2025.” Effected payments include social security payments and tax returns. For taxpayers expecting a federal tax refund on or after that date, make sure your tax return includes information for direct deposit of your refund.
Changes to Accepted Payments
The Treasury has not announced a similar date for the federal government to cease accepting payments made by check. However, it is taking action steps to soon require all remittances in electronic form. For taxpayers making tax payments after September 30, 2025, it is highly recommended to use one of the electronic payment options highlighted on the Internal Revenue Service (IRS) website, such as through direct deposit or by credit or debit card.
Exceptions to the IRS Electronic Payment Requirements
EO 14247 provides certain exceptions and accommodations to the mandated change to electronic payments for:
- Individuals who do not have access to banking services or electronic payment systems
- Certain emergency payments where electronic disbursement would cause hardship
- National security- or law enforcement- related activities
- Other circumstances determined by the Secretary of the Treasury
The Treasury has not issued guidance on how a taxpayer can apply an exception in EO 14247, or guidance on any additional exceptions identified by the Treasury.
Comments From the Public
In May 2025, the Treasury asked for comments regarding its implementation of EO 14247. The American Institute of Certified Public Accountants (AICPA), American Bar Association (ABA), and others responded with comments raising concerns about the impact of electronic refunds to certain taxpayers. AICPA comments identify these taxpayer situations as needing particular attention before refunds by check are eliminated:
- Individuals who may be considered “unbanked”
- International taxpayers who may be limited by financial regulations from holding a U.S. bank account
- Individuals who may be temporarily in the U.S. and do not have U.S. identification numbers to open a U.S. bank account
- Executors of estates and trustees of trusts
- Taxpayers who may qualify for an exception in EO 14247 or an additional exception established by the Secretary
The AICPA comment letter also requests that Treasury delay implementation of EO 14247 until guidance for issues noted above and a publicity campaign can be achieved.
How Cherry Bekaert Can Help
While the Treasury continues to take steps to enact Executive Order 14247, it is important that taxpayers, to the extent possible, develop their own plan for receiving electronic refunds and making tax payments electronically.
Need help navigating EO 14247 or the new tax rules? Your Cherry Bekaert tax advisor is available to discuss your plans for managing electronic tax payments and tax refunds.
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