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 be paid — online, including receiving refunds by direct deposit. The new guidelines stem from Executive Order 14247, issued by President Donald Trump in 2025.
Since the order affects how taxpayers will receive their tax refunds during 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 US 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 is not only valid for 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 reduce costs.
The order has been there for almost a year. When did the IRS start phasing out paper audits?
The IRS began phasing out paper tax refund checks, including for individual taxpayers, effective September 30, 2025.
Why is this the first I’ve heard of this?
The IRS made the switch slowly. This tax filing season marks the first major push.
Will this change the way I file my tax return?
No. You will still file your tax return the same way you always have. The only difference is how the refund is delivered.
How will I get the tax refund?
Most taxpayers will receive their refunds online. 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 mailing 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 specifically addresses unbanked or underbanked individuals. As a result, the IRS will offer alternative online payment options, including refunds delivered through certain mobile payment apps and prepaid debit cards. If these options do not work, limited exceptions allowing paper checks will still apply.
What happens if I don’t provide direct deposit information on my return?
If you do not provide bank information when you file your return, the IRS will continue to accept and process it. However, if you are owed a refund, it may take longer to issue. You should receive a CP53E notice in the mail asking for a response within 30 days, either providing bank details or explaining why you can’t. If you don’t respond and there are no other problems 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 in writing to request bank information. For this purpose, the agency will contact you only by sending a letter through the US 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 is my return? tool on IRS.gov, may display messages related to missing bank 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, which means you should receive your refund sooner when you use direct deposit or other online methods.
Who can still receive a paper check?
There is no official checklist, but last year, the Tax Advocate raises concerns on how eliminating paper checks could affect vulnerable populations. Working with external stakeholders, the Ombudsman has identified several groups that should qualify for exemptions from electronic payments. These include non-bank taxpayers. taxpayers with religious objections to electronic payment systems; incarcerated taxpayers; disabled taxpayers; those with high-fee accounts or overseas bank accounts. Individual Tax Identification Number (ITIN) holders. minority or elderly taxpayers; and victims of domestic violence.
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 to use their 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 overseas refunds.
What about tax refunds for deceased taxpayers?
The IRS currently issues paper refund checks to deceased accounts, and this process has not changed. If changes are made in the future, the IRS says it will issue additional guidance. Until then, refunds in respect of deceased persons will continue as per the existing rules.
Does this apply to payments made? to the IRS?
Yes. The executive order applies not only to outgoing payments such as refunds and benefits, but also to incoming payments, including tax liabilities and fees. Checks and money orders will still be accepted for now, but will be phased out in favor of electronic methods over time.
How long will I be able to pay by check?
The IRS has not set a specific deadline, using terms like “phase-out.” Audits will still be accepted when electronic options are not available for a particular transaction or when a taxpayer qualifies for an exemption due to hardship or legal or procedural requirements.
What online payment options are available?
Currently, taxpayers can 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 learn more on the IRS website. Processing fees may apply depending on payment method.
I thought EFTPS was going away?
It is. As of October 17, 2025, you can no longer register on EFTPS.gov. Taxpayers who are not currently enrolled can use IRS Direct Pay or create an online IRS account for individuals. Those who are already enrolled may continue to use EFTPS for now, but are encouraged to switch, as all people will have to move off EFTPS later in 2026.
Are there limits on online 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 a 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 accessible.”
What about tax professionals?
Tax preparers can make payments on behalf of clients using electronic methods such as EFTPS or Electronic Funds Withdrawal. They may also advise customers to pay directly using options such as Direct Pay, debit or credit cards or digital wallets.
Doing so would 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 types of business tax returns, allowing more businesses to receive refunds electronically. Paper refunds for businesses will be phased out over time, although checks will still be accepted when electronic options are not available or when exceptions apply.
The IRS is also expanding digital payment tools to make it easier for businesses to pay online.
Where can I find official guidance — and can I rely on it?
The IRS has published its own set of frequently asked questions here.
Guidance posted on the IRS website, including frequently asked questions and bulletins, is not binding legal authority and cannot be relied upon as precedent. Only instructions published in the Internal Revenue Bulletin are privileged.
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 reasonable relief, including negligence or other accuracy-related penalties, to the extent that the reliance results in an underpayment of tax.
What’s next for taxpayers?
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