ByKelly Phillips Erb,
Forbes Staff.
The IRS is moving away from paper refund checks in favor of digital payment methods to improve speed, security, and cost efficiency. For the 2026 tax filing season, taxpayers are encouraged to pay—and get paid—electronically, including receiving refunds by direct deposit. The new directives stem from Executive Order 14247, issued by President Donald Trump in 2025.
Since the order impacts how taxpayers will get their tax refunds during the tax filing season, the IRS recently updated its guidance. Here’s what you need to know.
Executive Order 14247, issued on March 25, 2025, requires federal agencies, including the U.S. Treasury and the IRS, to stop issuing paper checks by September 30 in favor of direct deposit, prepaid cards, or other digital payment options. The order doesn’t apply only to disbursements. It also applies to receipts—payments Americans make to the federal government, such as tax payments. The goals are to reduce fraud, improve security, increase efficiency, and lower costs.
