The Federal government is starting the process of moving away from the use of paper checks to receive and send payments to American taxpayers after the signing of Executive Order 14247 – “Modernizing Payments To and From America’s Bank Account”.
As of the publication of this post, the plan is to implement an electronic-only tax refund and payment arrangement starting with the 2025 tax year. However, exceptions may be made for those who qualify or are willing to experience delays.
Taxpayers will be strongly encouraged to use the direct deposit and withdrawal options starting with the 2025 tax year.
I recommend that my clients who typically use paper checks to pay taxes and collect refunds to consider the following:
Create a taxpayer account at IRS.gov
Creating a taxpayer account for yourself at IIRS.gov is great for many reasons, but in this context, you will be able to log in, see your tax balance due, and make electronic payments directly with the agency. Additionally, you can verify your filing history, download transcripts, see certain notices the IRS may have sent you, and create tax installment agreements.
Open a sole-use bank account
If you are a taxpayer who is hesitant to provide the IRS with your bank routing data for personal reasons, there may come a time when it is no longer possible to do so. One potential solution is to open a new bank account that you use solely for receiving tax refunds and making tax payments.
If you have any questions about how this new order will impact you, feel free to reach out and ask.
