IRS Electronic Payments: What Changed and What Is Next

Executive Order 14247, Modernizing Payments To and From America's Bank Account, signed March 25, 2025, set the federal government on a path away from paper checks. When this post first ran, the details were still unclear. A year later, the IRS has filled in most of them. Here is where things stand as of October 2026.

Refunds: Direct Deposit Is Now the Default

The IRS generally stopped issuing paper refund checks to individuals after September 30, 2025. If you file without bank information, or your direct deposit is rejected, here is what happens:

• The IRS mails a letter, followed by a CP53E notice asking for a response within 30 days.
• You respond by adding bank information through your IRS Individual Online Account. IRS employees cannot take direct deposit details by phone or in person.
• If you do not respond and there are no other issues, the refund is released as a paper check after about six weeks.

CP53E notices are also a popular disguise for scammers. Before you act on one, read our guide: Received an IRS CP53E Notice? Here Is How to Verify It Before You Act.

For businesses, the IRS is adding a direct deposit option to most business return types and will phase out paper refund checks for businesses over time.

Payments to the IRS: Checks Still Work, for Now

Despite early headlines, the IRS has not stopped accepting checks. Its FAQs, last updated January 27, 2026, state that mailed payments, including checks and money orders, are still accepted and processed. The IRS has said it will move fully to electronic methods over time, but it has not announced an end date.

That said, electronic payment is the better choice today. It is faster, it creates a clear record and it avoids mail theft, which remains a real problem for checks sent to the IRS.

EFTPS Is Going Away for Individuals

• Individuals have not been able to enroll in EFTPS since October 17, 2025.
• The IRS plans to retire EFTPS for individual taxpayers in late 2026.
• If you make estimated payments through EFTPS today, switch to IRS Direct Pay or your IRS Individual Online Account before year-end, so your January 15 estimate is not caught in the transition.

Businesses can continue to use EFTPS. Federal tax deposits must already be made electronically, through EFTPS, Direct Pay for businesses or the IRS Business Tax Account.

Current Ways to Pay the IRS

• IRS Direct Pay: free, from a bank account, no enrollment required
• IRS Online Account: individual and business versions, with balances and payment history
• Electronic funds withdrawal: scheduled when you e-file
• Debit card, credit card or digital wallet: through IRS-approved processors, which charge a fee
• EFTPS: businesses, and individuals already enrolled until it is retired
• Cash: at participating retail locations through the IRS cash payment program, subject to limits and fees

Exceptions

The order allows exceptions for taxpayers without access to banking services or electronic payment systems, and the IRS will accept checks where an electronic option does not exist for a transaction or a hardship or legal requirement applies.

State Payments

This order covers federal payments only. Pennsylvania, New Jersey and Delaware set their own payment rules, so check each state's requirements separately.

What to Do Now

• Set up an IRS Individual Online Account, and a Business Tax Account if you own a business.
• Confirm the bank account you want refunds deposited into, and include it on your return.
• Move off EFTPS before year-end if you are an individual user.
• Treat any notice asking for bank information with caution, and verify it through your online account before responding.

How We Can Help

Our tax team can help you set up your IRS online accounts, move estimated payments off EFTPS and confirm that a notice is legitimate before you respond.

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