Internal Revenue Service Shifts to Digital Refunds and Payments

Published on by MBJ Accounting

No need to find your checkbook to pay taxes this year. The IRS and U.S. Treasury has begun a transition to electronic payments, as required by Executive Order 14247, Modernizing Payments To and From America’s Bank Account. This change represents a major step in a broader federal initiative to transition all eligible payments to secure electronic delivery.

How Taxpayers Can Prepare for Electronic Refunds

  • Provide accurate banking information (routing and account number) when filing your return.
  • Open a free or low-cost bank or credit union account if you do not already have one. Resources and account options can be found at FDIC.gov/GetBanked and MyCreditUnion.gov.
  • Use certain mobile apps or prepaid debit cards that provide routing and account numbers. Taxpayers should verify the correct numbers with their financial institution or app provider.

For more information on refund options and timelines, visit irs.gov/refunds.

How to Prepare for Electronic Payments

Taxpayers can begin adopting electronic payment methods now by using:

  • IRS Direct Pay: Pay directly from your bank account with no fees.
  • Electronic Federal Tax Payment System (EFTPS): For individuals, businesses, and payroll providers.
  • IRS2Go app: Make secure mobile payments.
  • Debit or credit card options, or supported digital wallets.

To avoid payment-related delays, taxpayers are encouraged to keep their contact information, account details and communication preferences up to date.