Executive Order 14247, “modernizing payments to and from America’s bank account.”

On March 25, 2025, President Trump signed Executive Order 14247 requiring all federal disbursements and receipts — including tax payments and refunds — to be made electronically. Most taxpayers already use IRS direct pay, EFTPS, electronic funds withdrawal (during e-filing) or direct deposit. However, there are certain categories of taxpayers and return types for which electronic payment may not currently be available or may present other hardships. Other taxpayers simply prefer writing checks or do not have access to a U.S. financial institution.

Note: On Aug. 14, 2025, Treasury announced that the federal government will stop issuing paper checks for most federal payments on Sept. 30, 2025. At this time, Treasury continues to accept tax payments in the form of paper checks.

What does the Executive Order require?

Tax refunds

Section 3(a) addresses the electronic payment of tax refunds. It states, “effective Sept. 30, 2025, and to the extent permitted by law, the Secretary of Treasury shall cease issuing paper checks for all federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments and tax refunds, except as specified in section 4 of this order.”

The order mandates that the IRS stop issuing paper refund checks as of Sept. 30, 2025.

The order considers that exceptions to this mandate may be necessary. Section 4 directs Treasury to review and revise procedures for granting limited exceptions where electronic payment and collection may not be feasible. Section 4 specifically includes an exception for “individuals who do not have access to banking services or electronic payment systems.” The order also includes a broad exception (section 4(iv)) which includes “other circumstances as determined by the Secretary of the Treasury, as reflected in regulations or other guidance.”

Earlier this year, Treasury said it will issue further guidance outlining phase-out timelines, exception criteria and transition support in the near future. Treasury has yet to provide further details or guidance.