To increase efficiency, reduce costs, and prevent fraud, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) are moving towards fully electronic payments to and from the IRS. This includes both tax payments and refunds issued to taxpayers.

On March 25, 2025, President Trump signed Executive Order 14247, titled Modernizing Payments to and from America’s Bank Account. In response, the IRS issued new Frequently Asked Questions, explaining how the changes affect taxpayers, particularly during the 2025 filing season. Key takeaways are summarized below in a Q&A format.

Individual Tax Refunds

What’s changing with how refunds are paid?

As of September 30, 2025, the IRS generally has stopped issuing paper refund checks to individuals. Direct deposit will be the primary method for issuing refunds. In limited circumstances, certified payments or paper checks may still be issued if no electronic option is available.

Will the transition delay my refund?

Generally, no. Most taxpayers will receive refunds faster through electronic payments methods.

What happens if I don’t include direct deposit information on my return?

Taxpayers should provide direct deposit information when filing a tax return. If banking information is missing or invalid, the IRS still will process the return and send a CP53E notice by mail to the taxpayer’s last known address on record requesting updated information.

The CP53E notice will instruct taxpayers to visit IRS.gov/your-account to create an account and update their banking information or explain why it cannot be provided.

Once the taxpayer responds, the refund will be issued by direct deposit or paper check, as applicable. If the taxpayer does not respond to the CP53E notice within 30 days, the refund will be released as a paper check after six weeks.

Please note that the IRS will only contact taxpayers by U.S. mail, not by phone or text.

Will the IRS continue to issue paper refund checks to deceased accounts?

Yes. There are no changes to how refunds are issued to deceased individuals.

Payments to the IRS

Can I continue to pay the IRS by check or money order?

Yes, for now. The IRS will continue accepting checks and money orders but plans to transition fully to electronic payments. Over time, paper payments will generally be limited to cases involving hardship or legal requirements.

Do I need special technology to make electronic payments?

Generally, taxpayers only need internet access and a bank account or credit or debit card to pay electronically. The FAQs provide links to various electronic payment options for taxpayers. Visit the Payment Options page on the IRS’s website for more information.

How do I know that my payment was received?

Taxpayers who pay electronically will receive an immediate confirmation number and receipt or a confirmation email that can be saved or printed for their records.

Businesses

Will businesses continue to receive refunds by paper check?

The IRS is working to add the direct deposit option to most business tax return types. Paper check refunds for businesses will be phased out over time.

How can businesses make payments to the IRS?

Review the FAQs or visit the Payment Options page on the IRS’s website for information on payment options for businesses.

Miscellaneous

How will these changes affect international taxpayers?

For now, international taxpayers should continue to use existing options to file returns, make payments, and receive refunds. Wire transfers remain available, and the IRS is working to develop secure alternatives for international taxpayers.

Will these changes affect how I file my tax return?

No. No changes are being made to the way that tax returns are filed. Taxpayers will continue to file their tax returns as usual.

For questions on the IRS’s new electronic payment requirements, please contact Dean Dorton.