Executive Order #14247

Executive Order #14247 directs the U.S. Treasury to modernize federal payments by phasing out most paper checks and requiring electronic payment methods instead. For individuals and businesses, this change will impact how you receive federal benefits, refunds, and eventually how you pay taxes.

Froehling Anderson is here to help you navigate these changes and prepare for a smooth transition.

Federal Payments Move to Electronic Methods
Beginning September 30, 2025, the Treasury will stop issuing paper checks for most federal payments, including federal income tax refunds.

If you already receive your benefits electronically—such as Social Security or VA payments—no action is needed. However, if you still receive paper checks, you will need to transition to one of the following options:

• Direct Deposit into your personal bank account.
• Direct Express® Card, a prepaid debit card option.
• Enrollment through GoDirect.gov or by calling the Electronic Payment Solution Center at 800-967-6857.

Social Security Benefits
The Social Security Administration is reaching out to beneficiaries who still receive paper checks to encourage a switch to electronic payments. Exemptions are available but will be rare and limited to:

• Individuals without access to banking services.
• Certain emergency or hardship situations.
• National security or law enforcement needs.
• Other circumstances approved by the Treasury.

For most recipients, the transition will be straightforward, with direct deposit or the Direct Express Card as the preferred methods.

Payments to the IRS
The executive order also calls for modernizing tax payments to the IRS. While no set deadline has been established, taxpayers should expect to see a gradual shift away from paper checks toward electronic payments in the near future.

This modernization effort is designed to:

• Improve efficiency by reducing delays and errors associated with paper checks.
• Enhance security by minimizing the risk of lost or stolen checks.
• Streamline compliance for both individuals and businesses.

Now is the time to review how you send and receive federal payments. Making the transition early will help you avoid disruptions once the deadline arrives.

Executive Order #14247 signals a new era of electronic payments, one that prioritizes speed, security, and efficiency. While the transition may require a few extra steps now, the long-term benefits will simplify how Americans manage their finances with the federal government.

At Froehling Anderson, our team of trusted Minneapolis and St. Cloud based CPAs is committed to keeping you informed of new federal requirements and helping you adapt with confidence. Whether you are preparing for electronic benefit payments, filing your taxes, or planning for broader financial compliance, we are here to support you.

If you have questions about how these changes may affect your personal or business finances, don’t hesitate to contact us.

• Federal Register :: Modernizing Payments To and From America’s Bank Account
• Treasury Announces Federal Government Will Phase Out Paper Checks on September 30th | U.S. Department of the Treasury
• Social Security Transitions to Electronic Payments | News | SSA