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Peacock & French CPAs
Nov 07, 2025

At Peacock, Ellison & French, CPAs, we make it a priority to keep our clients informed about important financial and tax changes that can impact their personal or business finances. One major change is now underway that will affect how taxpayers receive refunds and make payments to the federal government.

Earlier this year, President Donald J. Trump signed Executive Order 14247, titled Modernizing Payments To and From America’s Bank Account. (White House Announcement) This federal directive is designed to phase out paper checks and move the government toward electronic payments and deposits for both disbursements and collections.

For taxpayers, this means the days of receiving refund checks in the mail are coming to an end. Going forward, most refunds will be sent via direct deposit to a bank account or other approved electronic method.

What the Executive Order Means for You

According to the U.S. Department of the Treasury, the federal government will stop issuing paper checks for most payments — including tax refunds, benefits, and vendor payments — by September 30, 2025, “to the extent permitted by law.” (Federal Register Summary)

The order also directs the Treasury to accept incoming payments, such as taxes and fees, electronically whenever possible. Payment methods may include:

• Direct deposit to a checking or savings account

• Prepaid debit card accounts

• Digital wallets or payment apps

• Real-time electronic transfers

For taxpayers who do not have access to traditional banking, the Treasury has noted that exceptions will be available in certain situations, such as emergencies or hardship cases.

How This Change Affects Tax Refunds

If you usually receive your IRS refund by paper check, this new rule means you will need to provide valid bank account information in order to get your refund electronically. According to the Internal Revenue Service, direct deposit is already the fastest, most secure, and most reliable way to receive refunds. (IRS Newsroom)

Starting with the 2025 filing season, paper check refunds will gradually be phased out. Taxpayers without a checking or savings account will need to open one before the September 2025 deadline to avoid delays. This also applies to joint filers, trusts, and estates that currently receive refunds by mail.

At Peacock, Ellison & French, CPAs, we recommend that our clients review their bank information early to ensure that account details are up to date. This simple step can help prevent refund delays or reissuance issues once the new rule takes effect.

How It Affects Tax Payments

This modernization effort does not just impact refunds — it also affects how taxpayers make payments to the federal government. While the timeline for implementation is still being finalized, Treasury officials have made it clear that paper checks for tax payments will eventually be phased out. (U.S. Treasury Statement)

Taxpayers should prepare by using one of the electronic payment options that are already available, such as:

• IRS Direct Pay — for individuals making tax payments directly from a bank account

• Electronic Federal Tax Payment System (EFTPS) — for businesses and individuals paying estimated taxes or large balances

• Credit or debit card payments via authorized IRS payment processors

These platforms are secure and designed to make payments faster and more trackable. Peacock, Ellison & French, CPAs can help clients set up EFTPS accounts or confirm payment posting timelines to avoid penalties or interest.

What You Should Do Now

To help our clients stay ahead of this change, we recommend taking the following steps now rather than waiting until next year’s deadline:

1. Confirm your banking information. Make sure your checking or savings account information is correct and on file with us.

2. Open a bank account if you do not have one. Refunds will not be mailed as paper checks after September 2025, except in rare cases.

3. Enroll in online payment systems. Familiarize yourself with IRS Direct Pay or EFTPS so you can make future payments electronically.

4. Educate family members or business partners. Everyone listed on a return should be aware of how the new payment process works.

5. Stay informed. Treasury and IRS guidance is evolving, and our team will continue to share updates as new details become available.

Being proactive will make the transition smooth and ensure that you continue receiving refunds and making payments without interruption.

Questions Still Pending

While the Executive Order sets the overall direction, several operational details remain in progress. The federal government has not yet finalized how exceptions will be handled for unbanked taxpayers or individuals living abroad. It is also unclear how digital wallets or prepaid debit options will work for those who prefer not to link a traditional bank account.

At the state level, refund and payment systems may not change immediately, since this order only applies to federal payments. However, some states may choose to adopt similar policies in the future to align with federal practices.

As more information becomes available, Peacock, Ellison & French, CPAs will continue to monitor Treasury announcements and IRS guidance closely to ensure our clients receive timely and accurate updates.

Our Commitment to Clients

This federal transition marks one of the largest changes to the tax refund and payment system in decades. At Peacock, Ellison & French, CPAs, we view it as an opportunity to help our clients stay organized, secure, and compliant. Our team is available to review your current payment methods, confirm that your banking details are correct, and answer questions about what this means for your specific tax situation.

We encourage all clients to prepare early. By September 30, 2025, paper refund checks will largely be a thing of the past. Acting now ensures a seamless experience once the new direct deposit and electronic payment requirements take effect.

For personalized assistance or to discuss how this change may affect your next tax filing, contact our team at Peacock, Ellison & French, CPAs. We’re here to help you navigate the transition confidently and efficiently.