Most taxpayers will receive their refunds via direct deposit.
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The IRS is moving away from paper refund checks in favor of digital payment methods to improve speed, security, and cost efficiency. For the 2026 tax filing season, taxpayers are encouraged to pay—and get paid—electronically, including receiving refunds by direct deposit. The new directives stem from Executive Order 14247, issued by President Donald Trump in 2025.
Since the order impacts how taxpayers will get their tax refunds during the tax filing season, the IRS recently updated its guidance. Here’s what you need to know.
What Is Executive Order 14247?
Executive Order 14247, issued on March 25, 2025, requires federal agencies, including the U.S. Treasury and the IRS, to stop issuing paper checks by September 30 in favor of direct deposit, prepaid cards, or other digital payment options. The order doesn’t apply only to disbursements. It also applies to receipts—payments Americans make to the federal government, such as tax payments. The goals are to reduce fraud, improve security, increase efficiency, and lower costs.
The order has been around for almost a year now. When did the IRS start phasing out paper checks?
The IRS began phasing out paper tax refund checks, including for individual taxpayers, effective September 30, 2025.
Why is this the first time I’m hearing about it?
The IRS has been making the change slowly. This tax filing season marks the first major push.
Will this change how I file my tax return?
No. You’ll still file your tax return the same way you always have. The only difference is how your refund is delivered.
How will I get my tax refund?
Most taxpayers will receive their refunds electronically. Direct deposit remains the primary method the IRS uses to issue refunds, and the agency says electronic refunds are generally faster and more secure than mailed paper checks.
What if I don’t have access to a bank account?
The IRS recognizes that not all taxpayers have access to traditional banking services, and the Executive Order explicitly accounts for unbanked or underbanked individuals. As a result, the IRS will offer alternative electronic payment options, including refunds delivered through certain mobile payment apps and prepaid debit cards. If those options don’t work, limited exceptions allowing paper checks will still apply.
What happens if I don’t provide direct deposit information on my return?
If you don’t provide banking information when filing your return, the IRS will still accept and process it. However, if you’re due a refund, it may take longer to issue. You should receive a CP53E notice in the mail requesting a response within 30 days, either by providing banking information or explaining why you can’t. If you don’t respond and there are no other issues with your return, the IRS will send a paper check after six weeks.
Will the IRS contact me in any other way about my tax refund?
No. The IRS will not contact you by phone or text to request banking information. For this purpose, the agency will contact you only by sending a letter through the U.S. mail to your last-known address. This policy is designed to protect taxpayers from scams, which often rely on unsolicited calls or messages claiming to be from the IRS.
One exception: if you use the Where’s My Refund? tool on IRS.gov, it may display messaging related to missing banking information.
Will tax refunds generally be faster or slower now?
The IRS says that electronic refunds tend to be faster and more secure than mailed paper checks, meaning you should receive your refund sooner when using direct deposit or other electronic methods.
Who might still receive a paper check?
There’s no formal checklist, but last year, the Taxpayer Advocate raised concerns about how eliminating paper checks could affect vulnerable populations. Working with external stakeholders, the Advocate identified several groups that should qualify for exemptions from electronic payments. These include unbanked taxpayers; taxpayers with religious objections to electronic payment systems; incarcerated taxpayers; taxpayers with disabilities; those with high-fee or foreign bank accounts; Individual Taxpayer Identification Number (ITIN) holders; minority or elderly taxpayers; and domestic violence victims.
The recommendations also included taxpayers in the cannabis industry, who may face banking restrictions due to federal law, those with limited access to financial infrastructure in rural or tribal areas, and taxpayers living in designated disaster zones.
What about tax refunds for international taxpayers?
International taxpayers have long faced challenges with refunds and payments. For now, the IRS says they should continue using existing systems to file returns, make payments, and receive refunds. The agency says it is developing secure alternatives, including partnerships with international payment providers, to improve access to refunds abroad.
What about tax refunds for deceased taxpayers?
The IRS currently issues paper refund checks to decedent accounts, and that process has not changed. If changes are made in the future, the IRS says it will issue additional guidance. Until then, refunds involving deceased individuals will continue under existing rules.
Does this apply to payments made to the IRS?
Yes. The Executive Order applies not only to outgoing payments like refunds and benefits, but also to incoming payments, including tax liabilities and fees. Checks and money orders will still be accepted for now, but over time they will be phased out in favor of electronic methods.
How long will I be able to pay by check?
The IRS has not set a firm deadline, using terms like “phased out gradually.” Checks will still be accepted when electronic options aren’t available for a specific transaction or when a taxpayer qualifies for an exception due to hardship or legal or procedural requirements.
What electronic payment options are available?
Taxpayers can currently pay using debit or credit cards, digital wallets, IRS Direct Pay, IRS Individual Online Accounts, IRS Business Tax Accounts, and the Electronic Federal Tax Payment System (EFTPS)—you can find out more on the IRS website. Processing fees may apply depending on the payment method.
I thought EFTPS was going away?
It is. As of October 17, 2025, you can no longer enroll in EFTPS.gov. Taxpayers who aren’t currently enrolled can use IRS Direct Pay or create an IRS Online Account for Individuals. Those already enrolled may continue using EFTPS for now but are encouraged to transition, since all individuals will be required to move off EFTPS later in 2026.
Are there limits on electronic payments?
Yes. Frequency limits apply to how often debit cards, credit cards, or cash can be used for certain payments. For most transactions, the limit is twice per year (exceptions apply to installment agreements). You can check the limits here.
Not to sound like a broken record, but what about payments from international taxpayers?
According to the IRS, wire transfers remain available, and the agency is “working to expand existing services to new countries while exploring additional cross-border payment solutions to make international payments faster and more affordable.”
What about tax pros?
Tax practitioners may make payments on behalf of clients using electronic methods such as EFTPS or Electronic Funds Withdrawal. They may also advise clients to pay directly using options like Direct Pay, debit or credit cards, or digital wallets.
Doing so will not violate Circular 230, which governs practice before the IRS and sets ethical standards for attorneys, CPAs, enrolled agents, and other tax professionals.
Are the rules the same for businesses?
Not exactly. After September 30, 2025, the IRS will begin adding direct deposit options to most business tax return types, allowing more businesses to receive refunds electronically. Paper refunds for businesses will be phased out over time, though checks will still be accepted when electronic options are unavailable or when exceptions apply.
The IRS is also expanding digital payment tools to make it easier for businesses to pay electronically.
Where can I find the official guidance—and can I rely on it?
The IRS has published its own set of FAQs here.
Guidance published on the IRS website, including FAQs and fact sheets, is not binding legal authority and cannot be relied upon as precedent. Only guidance published in the Internal Revenue Bulletin has precedential value.
However, the IRS notes that taxpayers who reasonably and in good faith rely on these FAQs generally will not be subject to penalties that allow for reasonable-cause relief, including negligence or other accuracy-related penalties, to the extent that reliance results in an underpayment of tax.
What’s Next for Taxpayers?
The easiest way to make sure you have the information you need? Check back with Forbes. To keep it simple, I recommend subscribing to our free tax newsletter, so the information you need arrives directly in your inbox each Saturday morning.
Source: https://www.forbes.com/sites/kellyphillipserb/2026/01/27/you-can-still-write-the-irs-a-check-but-your-refund-will-be-direct-deposit/
