On March 25, 2025, President Trump signed Executive Order 14247 — Modernizing Payments to and From America’s Bank Account. The order requires all payments made from or to the IRS to be conducted via electronic funds transfer (EFT).
The purpose of the Executive Order is to combat unnecessary costs, delays, risk of fraud, lost payments, theft and inefficiencies. For Fiscal year 2024 issuing paper checks was estimated to cost taxpayers more than $657 million.
The phaseout of paper check disbursements and receipts is scheduled for Sept. 30, 2025. Payments such as fees, fines, loans and taxes must be made electronically where permissible under existing law.
A few exceptions will remain at the discretion of the Treasury secretary:
- Individuals without access to banking services or electronic payment systems;
- Emergency payments where electronic disbursement would cause undue hardship;
- National security- or law enforcement activities where non-EFT transactions are necessary or preferred;
- Other circumstances as deemed necessary by the secretary.
Heads of federal agencies must submit implementation plans within 90 days of the order. Treasury Secretary Scott Bessent has 180 days to submit an implementation report detailing progress under the order.
Taxpayers should prepare for the shift to electronic payments ahead of the Oct. 15 filing deadline.
For Form 1040 filers, preparers will need to request bank account information. Guidance for Form 1120 filers is still pending.
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