On March 25, 2025, the President signed Executive Order (EO) 14247 and EO 14249, directing the U.S. Department of the Treasury (Treasury) to modernize the government’s payment infrastructure and enhance its ability to prevent waste, fraud, and abuse. These efforts support greater operational efficiency, financial integrity, and improved customer experience across all federal payment and collection activities.
Executive Order 14247, “Modernizing Payments to and from America’s Bank Account” mandates a shift to fully electronic federal payments and collections by September 30, 2025, to the extent permitted by laws. This includes all federal payments that are currently made by paper check – including Social Security benefits, tax refunds and vendor payments. These payments will be made electronically.
See https://tfx.treasury.gov/eo-resources
Tax planning: For taxpayers filing taxes or making quarterly estimate payments, this Executive Order, once fully implemented, will result in the taxpayer providing banking information to receive electronic deposits of tax refunds and/or tax due payments to the IRS via ETF.
Any accounting, business, Medicare or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement is the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.