Paper Checks Phasing Out:
Executive Order 14247, “Modernizing Payments To and From America’s Bank Account”, was signed on March 25th, 2025. This policy is working to transition payments made to and from the U.S. Department of Treasury to be fully electronic. Beginning September 30th, 2025, the federal government ceased issuing paper checks, with limited exceptions.
The Goal of This Policy Change:
Safety and Security: Electronic payments can help reduce the risk of fraud, theft, and undeliverable mail. According to the irs.gov, “paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments.”
Efficiency and Reduced Costs: Paper refund checks can take 6 weeks or more to arrive by mail. Electronic refunds may be issued in half that time or less with direct deposit. In addition to electronic payments being a more efficient option, it also costs less than paper checks.
Information for Individual Taxpayers:
No Changes to Filing: Taxpayers should expect to file the same. To avoid issues or delays, ensure that your bank account information is included and accurate when filing.
Payments and Refunds: The majority of refunds will be delivered via direct deposit. For payments made to the federal government, it is not yet mandated to do so electronically, but it is recommended that you start making payments electronically as well.
The policy does allow for certain expectations for those without access to bank accounts. If you have any questions about electronic payments or refunds, please do not hesitate to reach out to us.