Why the IRS is moving refunds online and what it means for you

By Patrick Charvat, CPA 

Paper refund checks from the IRS are now a thing of the past. If you are a client of Boyer & Ritter, it is important to confirm that we have your electronic banking details on file.

Executive Order 14247, signed on March 25, 2025, directed the IRS to begin phasing out paper tax refund checks starting September 30, 2025.

The change was driven largely by security concerns, as mail theft has increased significantly since the COVID-19 pandemic. Treasury officials report that paper checks are far more vulnerable than electronic payments, with a 16-fold greater likelihood of being lost, stolen, returned as undeliverable, or altered.

How can I pay my taxes electronically?

For the time being, taxpayers may continue mailing paper checks with payment vouchers to satisfy their tax liabilities.

However, IRS guidance indicates this policy could change beginning in 2027 or later, making it important for taxpayers to stay informed and plan ahead. The IRS currently offers several electronic payment options to accommodate different preferences and filing methods, including:

• IRS Direct Pay (bank transfer)
• Electronic funds withdrawal when filing electronically
• Debit or credit cards (fees may apply)
• Electronic Federal Tax Payment System (EFTPS)
• Wire transfers

The IRS has also stated that limited exceptions are being considered for taxpayers who cannot provide electronic banking information. While a full list has not yet been released, examples include homelessness, foreign residency, or certain religious objections — indicating a high threshold for qualifying outside of personal preference.

Bottom line

The move away from paper checks affects all taxpayers, regardless of whether you work with a tax professional or prepare your return on your own. Failing to comply with the electronic refund requirement could result in delays and the potential need to contact the IRS to resolve refund issues.

Whether you are working with a Boyer & Ritter tax professional, another firm, or self-preparing, now is the time to review your refund and payment preferences. The Boyer & Ritter tax team is available to answer questions about this transition and to help existing clients verify their information and prepare for what may come next.

About the Author

Patrick T.R. Charvat, CPA, is a tax manager at Boyer & Ritter. He provides tax and accounting services for individuals and businesses, including multistate and local entities. Contact Patrick at 717-761-7210 or pcharvat@cpabr.com.