Executive Order 14247 – titled Modernizing Payments To and From America’s Bank Account – mandates that the U.S. federal government transition entirely to electronic payments, both outgoing and incoming. The first major milestone was September 30, 2025, after which the Treasury will cease issuing paper checks for most federal disbursements (including tax refunds, Social Security and veteran benefits, vendor payments, etc.), except for limited exceptions. This policy shift is intended to reduce costs, increase payment security, and eliminate delays caused by paper-based processes. In fact, the IRS notes that a paper check is over 16 times more likely to be lost, stolen, or delayed compared to an electronic payment[3]. “Electronic payments such as direct deposit are safer than checks, allow quicker access to funds, and have less risk of fraud,” emphasized Linda Chero, the Treasury’s Chief Disbursing Officer, underscoring the urgency for those still receiving paper checks to make the switch[4].
Who Is Affected and What to Do
Fortunately, most Americans will notice little change from this policy. As of the 2025 tax filing season, approximately 93% of individual tax refunds were already issued via direct deposit, with only about 7% sent by paper check. Likewise, the vast majority of federal benefit recipients (Social Security, VA benefits, etc.) already receive payments electronically. No action is required for those who already use direct deposit or other electronic methods for federal payments.
However, if you are among the minority still receiving a paper check, you will need to switch to an electronic payment method as soon as possible to avoid disruption. The U.S. Department of the Treasury provides several options to enroll in direct deposit for federal payments:
- Contact the paying agency by phone: Call the federal agency that issues your benefit (e.g. Social Security Administration, Veterans Affairs). They can help you register your bank account for direct deposit. A directory of federal paying agencies’ contact numbers is available on GoDirect.gov.
- Enroll online: Visit GoDirect.gov to sign up for direct deposit of federal benefits via the Treasury’s official portal.
- Electronic Payment Solution Center: Call 1-800-967-6857 (Mon–Fri, 9am–7pm Eastern) for assistance in setting up direct deposit or the Treasury-sponsored Direct Express® Debit Mastercard® program. Direct Express is a debit card option for those who don’t have a bank account, allowing electronic receipt of benefit payments.
For individuals who do not have a bank account, the government advises taking steps now to open an account or utilize alternatives. Trusted resources include the FDIC’s GetBanked initiative and the NCUA’s MyCreditUnion.gov site, which can guide you in finding low-cost banking options. As a last resort, a limited number of waivers and exceptions will be available for people truly unable to access electronic payments, but these are intended to be rare.
The clear message: don’t wait – make the switch to electronic payments as soon as possible to avoid any interruptions in receiving funds.
Will the IRS Still Accept Paper Checks for Tax Payments?
A logical question many taxpayers are asking is whether the government’s move away from paper checks extends to the payments you send to the IRS – for example, if you typically mail a check for your income tax balance due or quarterly estimated taxes. As of now, paper checks are still being accepted for tax payments, and the IRS has not announced an immediate end to that practice. In its September guidance, the IRS explicitly instructed taxpayers to “continue to use existing payment options until further notice”. In other words, you may continue to pay taxes by check for the time being, unless and until the IRS issues new rules.
That said, Executive Order 14247 foreshadows a future phase-out of incoming paper payments as well. Section 3(c) of the order directs that “as soon as practicable, and to the extent permitted by law, all payments made to the Federal Government shall be processed electronically, except as specified in section 4”.
This indicates that paper checks for paying taxes will eventually be phased out, once the necessary systems and exceptions are in place. The IRS, in conjunction with the Treasury, is working on implementation plans and has promised additional guidance before the 2026 filing season. Taxpayers should view this as an early warning – while you can still mail checks today, it’s wise to familiarize yourself with electronic payment methods and be prepared to transition in the near future.
How to Pay Your Taxes Electronically
Whether you switch now voluntarily or in the future by necessity, it’s important to know the available electronic tax payment options. The IRS offers several secure, convenient ways for individuals to pay taxes without writing a paper check:
- IRS Direct Pay (the preferred method) – A free, direct online payment service for individuals. IRS Direct Pay lets you pay your federal taxes directly from a checking or savings bank account, without any fees or pre-registration.
You can use Direct Pay to make one-time payments for your Form 1040 balance due, quarterly estimated taxes, extensions, and other common payments (also allowing you to schedule multiple payments in advance). You simply verify your identity (using information like your prior-year AGI or payment amount) and provide your bank routing and account numbers. The payment is withdrawn electronically and you receive an immediate confirmation number.
(Note: Direct Pay is for making payments to the IRS – it cannot be used to receive a refund.) You can cancel or modify a scheduled Direct Pay transaction up to two business days in advance.
- Electronic Federal Tax Payment System (EFTPS) – A free service offered by the U.S. Treasury for both businesses and individuals to pay federal taxes electronically. EFTPS requires a one-time enrollment, which you can do online; after enrolling, you will receive a PIN by mail to activate your account.
You can log in anytime to view 15 months of payment history, cancel or change pending payments, and receive email notifications of payments. Security is ensured via multi-factor authentication (PIN, password, and your EIN/SSN). Many taxpayers find EFTPS convenient for its ability to handle multiple tax types and years under one profile. Keep in mind that new enrollments can take about a week to process, so plan ahead if you want to use EFTPS for an upcoming payment deadline.
- IRS2Go Mobile App – The IRS’s official smartphone app, IRS2Go, provides on-the-go access to key IRS online services. This free app (available for iOS and Android) lets you check your refund status, find free tax prep help, and — pertinent to this discussion — make tax payments from your mobile device. IRS2Go’s payment features integrate with Direct Pay and the IRS’s card payment processors. Through the app, you can securely authorize a Direct Pay debit from your bank account or opt to pay by credit/debit card (note: card payments are processed by IRS-approved third parties and may include a processing fee). In essence, IRS2Go offers the same electronic payment options as the IRS website, but in a convenient mobile format. It’s a handy tool if you prefer using your phone or tablet to handle tax matters.
Next Steps and Support
The federal push toward electronic payments is a significant change, but it is being implemented gradually to ensure everyone has time to adapt. Before the 2026 tax season, the IRS is expected to issue detailed guidance on these changes, including how any exceptions or accommodations will work for those who truly cannot use electronic payments.
As always, careful planning is key. If you receive federal benefits by paper check, take action now to set up direct deposit or an alternative. If you currently pay taxes by mailing a check, explore the digital payment options available and find which one works best for you. Transitioning to electronic payments will not only keep you compliant with upcoming rules but can also provide a faster and more secure way to manage your tax obligations.
Mauldin & Jenkins is here to help. Our team will continue to monitor this evolving situation. We can assist you in switching from paper checks to e-payments for both receiving federal payments and making tax payments. Please reach out to your Mauldin & Jenkins advisor with any questions about this change or for guidance on the best electronic payment solutions for your needs. By preparing now, you can stay ahead of the curve and ensure that paying and receiving money from the IRS and other federal agencies remains smooth and hassle-free in this new paperless era.
