According to a new executive order signed by President Donald Trump, the IRS and all federal agencies will stop issuing and accepting paper checks for payments by Sept. 30, CPA Practice Advisor reports. This move affects a wide range of transactions including tax refunds, vendor payments, benefits disbursements and even intragovernmental transfers. 

Under the executive order, paper-based payments create “unnecessary costs; delays and risks of fraud, lost payments, theft and inefficiencies.” In fiscal year 2024 alone, the cost of maintaining infrastructure to support paper transactions exceeded $657 million. 

Starting this fall, all federal payments must be made through electronic fund transfer (EFT) methods such as direct deposit, prepaid card accounts or other digital systems. Taxpayers and vendors will no longer be able to mail in checks or money orders for payments to the IRS. 

While the order mandates full adoption of EFT, the Treasury Department will retain flexibility to grant exceptions in limited circumstances for people without access to banking services or in national security-related cases. 

The Treasury is also expected to launch a national outreach campaign to help the public transition and to ensure unbanked populations are not left behind.