Business Taxes
Executive Order Phases Out Paper Checks for Tax Refunds & Payments
Action Needed for Tax Refunds and Tax Payments including but not limited to 2024 Extended Income Tax Returns, 2025 Q3 & Q4 Estimates, and Beyond
Under a new executive order effective September 30, 2025, tax refunds and tax payments will be required by federal law to be done electronically. The federal government will no longer issue paper refund checks or accept mailed payments.
What is an Executive Order and What Does it Mean?
An executive order is a directive issued by the President to federal agencies on how to carry out existing laws. While it carries the force of law within the scope of the executive branch, it does not change tax law itself or override statutory requirements enacted by Congress. At this time, there is still uncertainty around how this new requirement will be implemented, including how exceptions will be handled, how state tax agencies will respond, and whether the IRS will issue formal regulations or guidance. We will continue to monitor developments closely and share updates as more concrete information becomes available.
Tax Refunds
To receive your tax refund electronically for individual income tax returns, be sure to include your bank’s routing number and account number to enable direct deposit.
Tax Payments
IRS Direct Pay is a free and secure way to pay taxes directly from your checking or savings account. An IRS account is not required, changes are allowed within two days of scheduled payments, and up to two payments can be made within a 24-hr period. IRS Direct Pay can be used in many instances, including paying a balance due and making estimated tax payments. There are also options to pay with a debit card, credit card or digital wallet.
How to Schedule a Payment
- Go online to https://www.irs.gov/payments
- Select one of the payment types (for example Pay from your Bank Account)
- Select “Make a Payment”
- Select the type of payment (ex: balance due, estimate, amended return)
- Select Income Tax Form 1040 (if making a payment relating to individual income taxes)
- Select the tax year the payment should be applied to
- Verify your identity by using details from a prior year tax return of your choice
- Enter your bank routing number and account number
- Enter the payment amount
- Review the information carefully (especially the tax year and payment type) and then submit the payment
- Print or screenshot the payment confirmation to keep with your records
Benefits of Electronic Payments
Some benefits of electronic payments include faster access to funds, lower fraud risk, reduced cost and no mailing delays.
Exceptions
There are exceptions for certain individuals who do not have access to banking services or electronic payment systems but at this time limited guidance has been issued.
The Executive Order mandates a shift to electronic processing for both federal payments going out (like tax refunds) and federal receipts coming in (like income tax payments), including those from individuals and entities. This includes estimated taxes, balances due, and other forms of payment traditionally mailed by check or money order. While this order applies broadly, implementation will occur “to the extent permitted by law,” and exceptions may still apply, particularly for taxpayers without banking access or in emergency situations.
Estates and Trusts
For estates and trusts, there are additional open questions about how the IRS will implement these changes. Form 1041, which is used to report income for estates and trusts, currently has no place to enter direct deposit information, meaning refunds are generally issued by paper check. In addition, estates and trusts cannot currently use IRS Direct Pay and instead must set up an EFTPS account—a process that can be more time-consuming and cumbersome. Until these limitations are addressed, it remains unclear how fiduciaries will be expected to comply with the new mandate in practice.
Private Foundations (Form 990-PF)
All private foundations are required to use EFTPS regardless of size.
Further communications will be shared as additional guidance from the IRS becomes available.
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