The IRS released frequently asked questions on Tuesday regarding how an executive order from President Donald Trump will impact the way taxpayers receive tax refunds and make tax payments.
The fact sheet is intended to help taxpayers, businesses, and other stakeholders understand the changes under Executive Order 14247: Modernizing Payment To and From America’s Bank Account, signed by Trump on March 25, 2025, the tax agency said.
The executive order requires all federal disbursements and receipts—including tax payments and refunds—to be made electronically.
“These FAQs support the executive order in its effort to reduce fraud, improve security, lower costs, and make payments to and from the IRS faster and more reliable,” IRS CEO Frank Bisignano said in a statement on Jan. 27.
The changes in EO 14247 apply to:
- Payments sent by the federal government, including tax refunds, benefits, grants, and vendor or contractor payments; and
- Payments made to the federal government, including tax balances due, fees, penalties, and other payments from individuals, businesses, nonprofit organizations, and state or local partners.
“Electronic payments are generally processed faster, cost less to handle, and reduce errors compared to paper payments,” the IRS said in a media release. “Limited exceptions to electronic payment requirements will be available in specific situations, such as those involving hardship and/or legal or procedural requirements.”
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The first two FAQs regarding the transition to electronic payments state:
Q1. What changes are being made to how refunds are delivered pursuant to Executive Order 14247 and what effect do the changes have on the process of filing a tax return? (added Jan. 27, 2026)
A1. Executive Order 14247 states that the Treasury must stop issuing paper checks effective Sept. 30, 2025, to the extent permitted by law. The federal government must continue to issue certified payments in some limited circumstances and will issue a limited number of paper checks in cases where no alternative is available. Otherwise, the IRS generally stopped issuing paper refund checks for individual taxpayers after Sept. 30, 2025.
No changes are being made to the process of filing a tax return itself based on Executive Order 14247 at this time. The IRS will publish all guidance and information necessary for filing 2025 tax returns before opening the 2026 tax filing season. Until further notice, taxpayers should continue to use existing filing options.
Q2. Will taxpayers without bank accounts still be able to receive refunds? (added Jan. 27, 2026)
A2. Yes. While direct deposit into a bank account will remain the primary method for issuing refunds, the Executive Order explicitly acknowledges that not all individuals have access to traditional banking services. Alternative electronic payment methods, including payments via certain mobile apps and prepaid debit cards, will be available to serve these individuals. Limited exceptions to the paper check phase-out will also be established.
The IRS says the transition to electronic payments won’t delay tax refunds in most cases.
The IRS also stresses that the executive order won’t change how taxpayers file their tax returns.
“Taxpayers will continue to file their returns in the same manner as they have in the past,” the agency said. “The change affects how refunds are issued and how payments are made, not how returns are prepared or submitted, beginning with the 2026 filing season. For now, checks and money orders will still be accepted.”
To prepare for these changes, the IRS encourages taxpayers to:
- Use direct deposit for refunds by providing accurate bank or prepaid debit card information when filing.
- Choose electronic payment options when paying taxes, such as IRS Direct Pay, Electronic Federal Tax Payment System, or other approved methods.
- Review account information to ensure bank details are current and correct.
- Visit IRS.gov to learn about electronic payment options and available resources for taxpayers without a bank account.
For more information about how the IRS is implementing the executive order, visit Modernizing Payments To and From America’s Bank Account on IRS.gov.
Photo credit: mphillips007/iStock
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