Feb 27 • General discussion
What is Excutive Order 14247,
In accordance with Executive Order 14247, Modernizing Payments To and From America's Bank Account, signed on March 25, 2025, the U.S. Department of the Treasury, in coordination with the Internal Revenue Service and other federal agencies, is advancing the transition to fully electronic federal payments both to and from the IRS.
The purposes of Executive Order 14247 are to defend against financial fraud and improper payments, increase efficiency, reduce costs, and enhance the security of federal transactions. Across government, paper instruments (e.g., checks and money orders) are far more likely than electronic payments to be lost, stolen, altered or delayed. Moving to direct deposit and other secure electronic options improves speed, accuracy and protection for the public and the government.
This policy shift covers:
- Disbursements from the federal government (e.g., tax refunds, benefits, grants vendor/contractor payments), and
- Payments to the federal government (e.g., tax balances due, fees, penalties, and other remittances from individuals, businesses, nonprofits, and state/local partners).
Consistent with the Executive Order, and to the extent permitted by law, the U.S. Treasury Department and the IRS:
- Started phasing out paper tax refund checks and other disbursements on Sept. 30, 2025.
- Will reduce reliance on inbound paper remittances, expanding and promoting secure electronic options (such as ACH/direct debit, online payment portals, electronic funds transfer-based business payment channels, and same-day wire where appropriate). Electronic payments can be posted faster, have lower processing costs, and reduce errors compared to mailed checks or money orders.
No changes are being made to the process of filing a tax return itself. Taxpayers will continue to file as usual. What is changing is how payments are delivered and received, aligning methods with the Executive Order’s security and efficiency standards. The IRS will publish all guidance and information necessary for filing 2025 tax returns before opening the 2026 tax filing season.
Most taxpayers already receive their refunds electronically via direct deposit, and may already pay electronically. For those taxpayers without a bank account, the IRS, in coordination with the U.S. Treasury Department, Federal Deposit Insurance Corporation, National Credit Union Association, and U.S. Bank, is working to provide resources to help taxpayers open a free or
low-cost account or assist with establishing alternative electronic payment methods, such as direct deposit to certain prepaid debit cards. Limited exceptions to electronic methods will be made for specific situations such as those involving hardships, and/or legal and procedural requirements.
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What is Excutive Order 14247,
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