The IRS has issued FAQs to guide taxpayers and businesses on the shift to electronic payments under Executive Order 14247, aiming to enhance security, reduce costs, and speed up transactions. The changes affect refunds and payments, but not the way tax returns are filed. 

The US Internal Revenue Service has issued frequently asked questions in Fact Sheet 2026-02 on 27 January 2026 to help taxpayers, businesses, and other stakeholders understand the changes under Executive Order 14247: Modernising Payment To and From America’s Bank Account.

“These FAQs support the Executive Order in its effort to reduce fraud, improve security, lower costs, and make payments to and from the IRS faster and more reliable,” IRS Chief Executive Officer Frank J. Bisignano said.

Background

The US Department of the Treasury, in collaboration with the IRS and other federal agencies, is transitioning federal payments to and from the government to electronic methods pursuant to Executive Order 14247, signed March 25, 2025.

These changes apply to:

  • Payments sent by the federal government, including tax refunds, benefits, grants, and vendor or contractor payments; and
  • Payments made to the federal government, including tax balances due, fees, penalties, and other payments from individuals, businesses, nonprofit organisations, and state or local partners.

Electronic payments are generally processed faster, cost less to handle, and reduce errors compared to paper payments. Limited exceptions to electronic payment requirements will be available in specific situations, such as those involving hardship and/or legal or procedural requirements.

Filing tax returns is not changing

The Executive Order does not change how taxpayers file their tax returns. Taxpayers will continue to file their returns in the same manner as they have in the past. The change affects how refunds are issued and how payments are made, not how returns are prepared or submitted, beginning with the 2026 filing season. For now, checks and money orders will still be accepted.

What taxpayers should do now

To prepare for these changes, the IRS encourages taxpayers to:

  • Use direct deposit for refunds by providing accurate bank or prepaid debit card information when filing.
  • Choose electronic payment options when paying taxes, such as IRS Direct Pay, Electronic Federal Tax Payment System, or other approved methods.
  • Review account information to ensure bank details are current and correct.
  • Visit IRS.gov to learn about electronic payment options and available resources for taxpayers without a bank account.