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Articles From Lumsden McCormick

IRS FAQ: Executive Order 14247 and Electronic Payments

1. What is Executive Order 14247 and how does it affect IRS payments?

Executive Order 14247 mandates that all federal payments and collections, including IRS tax refunds and payments—be processed electronically starting September 30, 2025. This means the IRS will no longer issue paper checks for refunds or accept paper checks for payments, except in limited cases.

2. What types of IRS payments are affected?

3. Will I still be able to receive a paper refund check?

No, unless you qualify for an exception. Paper checks will be discontinued for IRS refunds after September 30, 2025. Exceptions may apply for:

  • Individuals without access to banking services,
  • Emergency situations, and
  • National security-related transactions.

4. How do I update my refund delivery method?

You can update your refund delivery method by:

  • Providing your bank account information to your tax professional when filing your tax return,
  • Using the IRS Online Account portal to manage your preferences, and
  • Contacting the IRS if you need assistance setting up electronic payment options.

5. What if I don’t have a bank account?

The IRS and Treasury are working to provide alternative electronic payment options for unbanked and underbanked individuals, such as:

  • Prepaid debit cards,
  • Digital wallets, and
  • Mobile payment platforms.

Public awareness campaigns and outreach efforts are underway to help affected taxpayers transition smoothly. More information is expected to be provided in the coming weeks.

6. How does this improve security and efficiency?

  • Reduces fraud: Paper checks are more vulnerable to theft and alteration.
  • Speeds up payments: Electronic transfers are faster and more reliable.
  • Saves money: Electronic payments cost less to process than paper checks.

7. Will business transactions also be affected?

Yes, businesses are also transitioning to electronic-only methods. Paper checks and money orders are being eliminated to comply with the Executive Order.

8. Where can I get help or more information?

IRS FAQ: Executive Order 14247 and Electronic Payments

for more information

Kelsey joined the tax department in 2014 and specializes in international cross-border taxation of individuals and businesses. She works with businesses and individuals to recognize any potential planning that could be done regarding cross-border repatriation, controlled foreign corporations, and passive foreign investment companies. Over the past few years, Kelsey has been working with individuals working abroad going through the voluntary streamlined filing compliance requirements.

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