IRS issues frequently asked questions about Executive Order 14247: Modernizing Payments To and From America’s Bank Account

IR-2026-13, Jan. 27, 2026

WASHINGTON - The Internal Revenue Service today issued frequently asked questions in Fact Sheet 2026-02 PDFto help taxpayers, businesses, and other stakeholders understand the changes under Executive Order 14247: Modernizing 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 U.S. 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 organizations, 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.

For more information about how the IRS is implementing the Executive Order, visit Modernizing Payments To and From America's Bank Account on IRS.gov.

More information about reliance is available on IRS.gov.