Overview
On March 25, 2025, President Trump signed Executive Order 14247, “Modernizing Payments To and From America’s Bank Account.”
Beginning September 30, 2025, the federal government will no longer issue paper checks for payments, including individual tax refunds.
For taxpayers filing 2025 tax returns in 2026, this means direct deposit information must be provided or refund processing could be delayed.
Why Is This Happening?
The Executive Order was created to achieve three main goals:
- Protect taxpayers
- Speed up refunds
- Cut administrative costs
Protecting Taxpayers
As our society becomes increasingly paperless, mailed paper checks are viewed as a higher security risk compared to electronic payments.
- Paper checks are over sixteen times more likely to be lost, stolen, or altered than direct deposits or secure electronic transfers.
- Check fraud cases have nearly doubled in recent years.
- Executive Order 14247 aims to reduce these risks by requiring government payments via direct deposit.
While the IRS intends to eventually require all tax payments to be made electronically, final regulations have not yet been issued.
In the meantime, taxpayers are encouraged to use existing IRS electronic payment options for faster, more secure transactions.
Speeding Up Refunds
Starting September 30, 2025, the IRS will stop issuing paper refund checks. Direct deposit remains the fastest and most reliable way to receive your refund.
Although certain exceptions may apply (to be clarified by the IRS), taxpayers who file without banking information will:
- Receive a follow-up letter from the IRS, and
- Experience delays as their refund is processed manually.
To ensure smooth processing:
- Include your bank account and routing numbers when filing your tax return.
- If you do not currently have a bank account, visit:
- FDIC.gov/GetBanked
- MyCreditUnion.gov
These resources help you find low-cost or no-cost banking options that accept direct deposit.
Cutting Costs
Ending paper checks will also help the government save taxpayer money.
In 2024 alone, the cost of maintaining the infrastructure for digitizing paper records exceeded $657 million nationwide, according to the White House.
Reducing these expenses allows more funds to be directed toward improving electronic systems and fraud prevention.
What Should You Do Next?
Executive Order 14247 represents a major step toward a fully digital payment system for taxpayers. Preparing now will help you avoid refund delays and ensure compliance with new federal requirements.
If you have questions or need guidance on setting up direct deposit or preparing for these changes, please call us at (401) 921-2000 or contact us here.