IRS Direct Deposit Guide: Surviving the Paper Check Phase Out

Is the IRS Stopping Paper Checks? Yes, big changes are coming! Executive Order 14247 is shifting almost all federal payments to digital. Find out how this affects your refunds and tax bills before the 2026 season starts.

Let’s be honest, waiting for a check in the mail can be nerve-wracking. Is it late? Did it get lost? Did my dog eat it? 🐶 We’ve all been there. Well, the IRS is making a massive shift that might just solve those headaches for good.

With the implementation of Executive Order 14247, the government is moving to a “fully electronic” system for payments going out and coming in. While change can be a bit scary, I’ve dug through the latest Fact Sheet (FS-2026-02) to break down exactly what this means for you, your business, and your bank account. Let’s dive in! 😊

What is Executive Order 14247? 🤔

So, what’s the big deal? Signed in March 2025, Executive Order 14247 is titled “Modernizing Payments To and From America’s Bank Account.” The main goal here is pretty straightforward: efficiency and security.

Paper checks and money orders are way more likely to be lost, stolen, or altered compared to digital payments. By moving to Direct Deposit and electronic funds transfer, the IRS aims to cut costs, reduce errors, and get your money to you faster.

💡 Good to know!
The phase-out of paper checks officially started on September 30, 2025. While the filing process for your 2025 tax return hasn’t changed, how you pay or get paid definitely has.

Changes for Individuals: Refunds & Payments 👤

For most of us, the biggest question is: “How do I get my refund?”

If you are used to getting a paper check, you’ll need to update your habits. The IRS generally stopped issuing paper refund checks for individuals after September 2025. You should ensure your Direct Deposit information is up to date when you file your return.

What if I forget to add bank info?

If you file electronically but leave out the banking info, the system might alert you. If you skip it entirely, here is what happens:

The IRS will send a letter to your address asking for the info.
You’ll receive a CP53E notice requesting a response within 30 days.
You can update this via your IRS Individual Online Account.

⚠️ Heads up!
NEVER give your direct deposit information over the phone or to someone claiming to be an IRS agent calling you. The IRS will only contact you via U.S. mail for this purpose.

Changes for Businesses 🏢

Business owners, listen up! The rules are even stricter here. The IRS is adding direct deposit options to most business tax return types to speed things up.

However, the biggest change concerns Federal Tax Deposits (FTD). You generally cannot use cash or credit cards for these anymore.

Action	Old Way (Discouraged/Stopped)	New Digital Way
Business Refunds	Paper Checks	Direct Deposit
Federal Tax Deposits	Cash / Mailing Checks	EFTPS / Business Tax Account
Bulk Payments	Multiple Checks	EFTPS Batch Provider Tool

🔢 Payment Method Checker

Not sure which method to use? Select your situation below to see the recommended action.

I am a(n):

I need to:

The Sunset of EFTPS for Individuals 🌇

There is a specific change for the Electronic Federal Tax Payment System (EFTPS) that individuals need to watch out for.

Key Dates to Remember

Oct 17, 2025: Individuals can no longer create new enrollments in EFTPS.
Late 2026: EFTPS payments will fully sunset for individual taxpayers.

The Fix: Start using the IRS Online Account for Individuals or IRS Direct Pay guest path. It’s user-friendly and essentially replaces the need for EFTPS for personal taxes.

What If I Don’t Have a Bank Account? 🏦

The government knows that not everyone has a traditional bank account. The Executive Order isn’t trying to leave you behind.

For unbanked taxpayers, the IRS is working with the FDIC and Credit Unions to help you open free or low-cost accounts. They are also enabling payments via certain mobile apps and prepaid debit cards.

📌 Just a heads-up!
Exceptions *do* exist. If you have a genuine hardship, legal restriction, or absolutely no way to use electronic methods, the IRS will still issue paper checks in limited cases.

🚀

EO 14247 Snapshot

📅 Effective Date: September 30, 2025 (Phase-out began).

💸 Refunds: Default is now Direct Deposit. Paper checks are rare exceptions.

🏢 Businesses:

No Cash/Card for Federal Tax Deposits = Use EFTPS

🛑 EFTPS for Individuals: No new enrollments. Sunsets late 2026.

Secure your refund by updating banking info on your next return!

Frequently Asked Questions ❓

Q: Will the IRS call me to get my bank information?

A: No! The IRS will never call or text you for this. They will send a letter (Notice CP53E) to your address on record. If someone calls asking for bank details, it’s likely a scam.

Q: Can I still pay my taxes with a check?

A: For now, yes. The IRS still accepts checks and money orders for payments to them, but they are strongly encouraging digital methods. However, businesses generally cannot use checks for Federal Tax Deposits.

Q: Does this affect refunds for deceased taxpayers?

A: Not yet. The IRS is continuing its current practice for decedent accounts, so paper checks may still be issued in those specific cases until further guidance is released.

Q: Will switching to digital delay my refund?

A: Quite the opposite! Electronic delivery is much faster than waiting for mail. One of the main goals of the Executive Order is to reduce delays and ensure you get paid sooner.

The transition to a fully digital IRS might seem like a hassle at first, especially if you love the feel of a paper check. But in reality, this is a move towards a safer, faster, and more reliable system for everyone.

Make sure you double-check your direct deposit details on your next return, and if you’re a business owner, get those electronic payment accounts set up ASAP. Do you have any concerns about going fully digital? Let me know in the comments below! 😊

IRS Direct Deposit Guide: Surviving the Paper Check Phase Out

What is Executive Order 14247? 🤔