In March 2025, President Trump signed Executive Order 14247, titled “Modernizing Payments To and From America’s Bank Account.” Under this order:
- Effective September 30, 2025, the U.S. Treasury will stop issuing paper checks for all federal disbursements, including tax refunds, benefit payments (like Social Security or Veterans Affairs), vendor payments, and more—unless there are specific exceptions.
- Likewise, all payments made to the federal government (taxes, fines, fees) are to be conducted electronically “as soon as practicable,” with limited exceptions.
In short, after September 30, you generally can’t expect a paper check from the IRS for your tax refund, and likely you won’t be able to pay the federal government by paper check unless you qualify for an exception.
Why the Government Is Doing This
There are several reasons cited in the executive order and supporting documentation:
- Efficiency & Cost Savings
Paper checks are expensive—not just printing and postage, but processing, handling returns if checks are lost or undeliverable, etc. - Fraud, Loss, and Delay Risks
Paper checks are reported to be many times more likely to be lost, stolen, altered, or returned undeliverable compared to electronic funds transfers. The order and related releases note that Treasury checks are about 16 times more likely to suffer those types of issues. - Modernization / Digital Transformation
Moving toward a more fully electronic payments ecosystem—direct deposit, debit or credit card payments, digital wallets, real-time payments, etc.—fits broader government goals for reducing waste, increasing security, and speeding up transactions. - Public Benefit
For many people, electronic payments mean faster access to funds, fewer postal delays, less risk of mail theft, and more reliability.
What You Need to Do to Be Ready
To avoid any delays or loss in refunds or other federal payments, it’s wise to take action before the September 30, 2025, deadline. Here are steps to stay ahead:
- Check Your Payment Method for Estimated Payments
If you have been making your IRS estimated payments by sending in a paper check, you will need to make your fourth quarter payment, due 1/15/2026, electronically. The best way to do so is on the IRS website. - Open a Bank or Credit Union Account (if needed)
If you’re “unbanked,” now is the time to open a basic account. There are often low-cost or no-fee accounts that can handle this. - Update Tax Filing Forms with Electronic Info
When you file your tax return, make sure to provide proper direct deposit or electronic receipt info. If you forget, it may result in delays or additional steps to get your refund. - Watch for IRS / Treasury Guidance
As the deadline approaches, the IRS will likely issue more detailed instructions, FAQs, notices, etc., for special cases (e.g. if you don’t have a bank account, or you live abroad). Keep an eye on their website and any mail/notifications from them. - Be Aware of Scams
Big changes like this attract fraudsters. Don’t share your bank information unless you’re sure of the recipient, and verify communications. The Treasury and IRS (and beneficiaries agencies) will use official known channels.
Challenges, Concerns & Unresolved Questions
Shifting the entire federal payments ecosystem away from paper checks is a big deal. Some challenges and concerns include:
- Access Issues
Some people lack access to bank accounts or reliable internet, or reside in areas where setting up direct deposit is more challenging. Making sure there are real, feasible alternatives is crucial. - Technological / Logistical Barriers
For instance, individuals abroad who typically receive checks by mail may encounter complications if they lack U.S. bank accounts, a common situation among expatriates. Additionally, for some estates/trusts, discrepancies between names on bank accounts and those on returns may occur, potentially delaying or complicating refunds. - Transition Time & Outreach
For changes this big, providing education, systems updates, clear forms, and time for people to make the switch is essential. There are risks that without good outreach, certain populations will suffer delays or confusion. - Legal & Regulatory Exceptions
The executive order provides for exceptions, but precisely how they’ll work in practice (who qualifies, what process to apply for exceptions, how to handle emergency cases, etc.) remains somewhat opaque. - Potential for Errors or Delays
If account numbers are incorrect, people may not receive their notices, or there may be delays in setting up electronic payment, refunds, or payments. Also, taxpayers may need help navigating digital tools.
The Bottom Line
The era of paper checks from the IRS (and many other federal payment activities) is ending as of September 30, 2025, barring exceptions. For most people, this means faster, safer, more efficient payments—refunds via direct deposit or other digital methods rather than waiting for a check in the mail. To ensure a smooth transition, individuals should take immediate action: update their payment information, open bank accounts if necessary, stay alert for guidance, and plan ahead.
If you’re doing your taxes, expecting a refund, or receiving federal benefits by check, don’t wait. Get your payment details in order. That way, this change will be an improvement, not a headache.
