As part of Executive Order 14247, “Modernizing Payments To and From America’s Bank Account,” the U.S. Treasury and IRS have begun a major transition toward fully electronic payments, both the refunds taxpayers receive, and the payments taxpayers send to the IRS. The goal is to increase security, reduce fraud, speed up processing, and cut the costs and delays associated with paper checks.

For individual taxpayers, these changes are already underway and will continue expanding over the next few years. Here’s what you need to know.

Paper Refund Checks Are Being Phased Out

Effective September 30, 2025, the IRS largely stopped issuing paper refund checks to individual taxpayers except in limited circumstances where no electronic option is possible. This does not change how you file your tax return, only how the IRS sends your refund.

Most taxpayers already receive refunds via direct deposit, and this will now become the standard. Electronic refunds are generally faster, more secure, less likely to be lost or stolen, and less susceptible to fraud or delays.

If you do not include direct deposit information on your return, the IRS will still process the return, but your refund may take longer. The IRS may send you a letter asking you to update your banking details if they are missing or if a deposit is rejected.

Payments to the IRS Are Also Moving Electronic

While paper checks are still accepted for now, the IRS has made clear that electronic payments will become the norm and that paper payments will gradually be phased out.

The IRS provides several electronic options that individual taxpayers can use today:

IRS Direct Pay
This method allows taxpayers to pay directly from a checking or savings account with no IRS fee. Payments typically show the same day when scheduled for immediate processing. An email confirmation is available for recordkeeping. Direct Pay does not require an IRS account but does require identity verification each time.

IRS Online Account
Taxpayers can create an IRS Online Account to view balances, history and make payments from a linked bank account. This option provides better tracking than Direct Pay. Creating an account requires identity verification through a secure login partner such as ID.me.

Debit or credit card payments
Taxpayers may pay through IRS‑approved third-party payment processors, so convenience fees apply. While not free, card payments can be useful when timing or available funds make bank account payments less practical.  Keep in mind that the fees can be significant, depending on the size of the payment.

EFTPS for existing enrollees
The Electronic Federal Tax Payment System remains available for individuals who enrolled before the IRS closed new individual enrollments in October 2025. Existing users can continue making payments but are encouraged to transition to IRS Direct Pay or an IRS Online Account in 2026 as modernization continues.

Same‑day wire transfers
Some financial institutions offer same day wire transfers for taxpayers who need to send a payment quickly. These may involve bank fees.

Although no end date has been announced for accepting paper checks from individuals, the IRS strongly encourages taxpayers to shift to digital methods and notes that paper payment acceptance will decline over time. For clients who are accustomed to mailing checks with quarterly estimates or with their annual balance due payment, now is the time to begin transitioning.

What You Should Do Now

To prepare for the ongoing modernization:

• Ensure direct deposit information is accurate when filing your return.
• Consider moving to electronic payment options for estimates and balances due.
• Use your IRS Online Account to securely store banking information and track payments.

Why This Matters

Electronic payments generally reduce errors, speed up processing, guard against fraud, and help ensure timely refunds. As this transition continues, taxpayers who rely on paper checks, either for receiving refunds or sending payments, can expect increasing delays and extra administrative steps.

At Krilogy Tax, we want to help you stay ahead of these changes so you experience a smooth and secure tax season. If you have questions about updating your IRS payment methods or navigating these new requirements, your Krilogy Advisor and the Krilogy Tax Team are here to help.