As a reminder, the IRS began phasing out paper check refunds last fall, starting with individual taxpayers. As part of this modernization effort under Executive Order 14247, the federal government is moving toward electronic payments for refunds and other transactions. Because of this change, we may request direct deposit information to help ensure refunds are issued quickly and securely.

What Executive Order 14247 Means

The Internal Revenue Service has issued frequently asked questions (FAQs) to help taxpayers, businesses, and other stakeholders understand these updates. The changes 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.

Filing Stays the Same, but Refund Delivery Is Changing

These updates do not affect how tax returns are prepared or filed for the 2026 filing season. The change impacts how refunds are issued and how payments are made. For now, checks and money orders will still be accepted for payments due.

Why the IRS Encourages Electronic Payments

Electronic payments are generally processed faster, cost less to handle, and reduce errors compared to paper checks. The IRS encourages taxpayers to use direct deposit for refunds and electronic payment options whenever possible.

Learn More From the IRS

Please refer to the IRS website to review the FAQs and other information regarding electronic payment options.

Disclaimer of Liability
Our firm provides the information in this article for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this blog are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.