The Internal Revenue Service has issued IRS Fact Sheet FS-2026-02, offering answers to common questions about Executive Order 14247, which directs the federal government to modernize how payments are made to and from the IRS. The changes are intended to increase security, reduce fraud and delays, and make tax payments and refunds more efficient.
Key points clients should know:
1. Paper tax refund checks are being phased out
As of September 30, 2025, the IRS generally stopped issuing paper refund checks where electronic options are available.
Taxpayers should provide direct deposit information on their tax returns to receive refunds more quickly and securely.
2. Taxpayers without bank accounts still have electronic options
If a taxpayer doesn’t have a traditional bank account, alternative electronic methods (such as certain prepaid debit or mobile payment options) are being developed. The IRS and partners (like FDIC and credit unions) are working to help taxpayers access low- or no-cost accounts.
3. Payments to the IRS are also evolving
While checks and money orders are still accepted for now, the IRS is encouraging taxpayers and businesses to use electronic payment options (e.g., IRS Direct Pay, IRS Online Account, digital wallet, debit/credit card, or EFTPS for businesses). Over time, the IRS expects most payments to be made electronically.
For individual taxpayers, new EFTPS enrollments were sunset, and individuals are encouraged to use IRS Direct Pay or an IRS Online Account.
4. Confirming electronic payments
Electronic payments generate a confirmation number or receipt, which can help taxpayers and preparers verify that payments were received — unlike mailed checks, which carry risk of loss or delay.
Need Help Setting Up Electronic Accounts or Payments?
If you haven’t created an IRS online account, need help setting up direct deposit for refunds, or want guidance on making electronic payments for the first time, our team can walk you through:
- How to set up an IRS online account
- Options for bank, credit union, or prepaid card accounts
- How to pay taxes online safely and securely
Before You Pay Anything…
A quick reminder about scams: As more taxpayers move to online accounts and electronic payments, scammers are also increasing their activity. The IRS will not demand immediate payment by phone, text, email, or social media, and it will not ask for payment via gift cards, wire transfers, or peer-to-peer apps. If you receive a call, message, or notice pressuring you to pay without verification, pause before taking action. We strongly encourage clients to verify any IRS-related request with us before making a payment to help avoid fraud or identity theft.
For additional details, please see the IRS page: https://www.irs.gov/pub/taxpros/fs-2026-02.pdf.
Contact us for more information.
