As many of you know, the IRS is moving forward with implementing Executive Order 14247, which requires the Treasury Department to stop issuing paper checks by September 30, 2025. While this is a significant change, the order allows exceptions for unbanked individuals, cases of undue hardship, and other circumstances at the discretion of the Secretary of the Treasury.

On September 23, the IRS issued its first press release on the topic, outlining the initial steps:

• Paper refund checks for individual taxpayers will begin phasing out on September 30, 2025.
• Additional guidance for electronic payments and refunds tied to 2025 tax returns will be issued before the start of the 2026 filing season.
• In the meantime, taxpayers should continue filing returns and making payments as usual.

In practical terms, the IRS is signaling that the status quo remains in place until the 2026 filing season. That means taxpayers can continue to submit paper check payments to the IRS this filing season without disruption. The IRS also emphasized that most refunds will be delivered via direct deposit, but some taxpayers may still receive paper checks depending on individual circumstances.

What This Means for CPAs and Taxpayers

For the near term, nothing changes in how taxpayers file, pay, or receive refunds. The real shift will occur starting with the 2026 filing season. CPAs should begin preparing clients for the eventual move to electronic payments and refunds, while also being aware of the exceptions that may apply.

Additional Resources

• AICPA: IRS Payment Modernization – Sending and Receiving Funds Electronically
• IRS: Payment Options