This IRS Fact Sheet (FS-2026-02) outlines a significant shift in how the federal government handles money. Based on Executive Order 14247, signed in March 2025, the IRS is aggressively moving away from paper instruments like checks and money orders to a fully electronic system.

Here is what you need to know to prepare for the 2026 filing season.

1. Refunds: The Paper Check is (Mostly) Retired

The IRS generally stopped issuing paper refund checks for individual taxpayers after September 30, 2025. While the actual process of filing a tax return remains unchanged, the delivery method for refunds is now digital-first.

• Primary Method: Direct deposit into a bank account remains the standard.
• Unbanked Clients: For those without traditional bank accounts, alternative electronic options like prepaid debit cards and mobile apps are available.
• Exceptions: Paper checks will only be issued in very limited circumstances, such as cases of extreme hardship or specific legal requirements where no electronic alternative exists.

2. What Happens if Banking Info is Missing?

If a return is submitted without direct deposit information, the IRS will not immediately mail a check. Instead:

• IRS Correspondence: The IRS will send a letter to the taxpayer’s last-known address requesting banking information.
• CP53E Notice: Taxpayers will receive a CP53E notice in the mail and have 30 days to respond with their account details or an explanation of why they cannot provide them.
• The “Six-Week” Safety Net: If there is no response to the notice, the IRS will eventually release the refund as a paper check, but only after a six-week delay.

3. Paying the IRS: The Sunset of EFTPS

While the IRS still accepts paper checks and money orders for balances due “for now,” the goal is a full transition to electronic payments.

• EFTPS Phase-Out: For individual taxpayers, the Electronic Federal Tax Payment System (EFTPS) is being sunsetted. New enrollments for individuals were disabled as of October 17, 2025.
• Full Transition: All individual taxpayers currently using EFTPS will be required to transition to the IRS Individual Online Account or IRS Direct Pay later in 2026.
• Cash Options: Those who prefer paying in cash can still do so through retail partners like Vanilla Direct, which the IRS considers an electronic payment method.

4. Security and Scams: A Critical Warning

With the push for digital information, it is vital to realize how the IRS will contact you and, more importantly, how they will not contact you:

• No Texts or Calls: For security reasons, IRS employees cannot take direct deposit information over the phone or in person.
• Mail Only: The IRS will only contact taxpayers via U.S. mail to request missing banking information.