Donald Trump is back with a new executive order. He has instructed the Internal Revenue Service to stop sending paper checks this tax return filing season. It might be the last season that taxpayers can receive IRS refunds on paper or send payments using paper checks.
On March 25, the Republican President signed this new executive order that authorizes the federal government to eliminate the use of paper checks. Instead, his administration emphasizes exclusively electronic payments option effective by September 30, 2025. This new move is a part of cutting fraud and improving efficiency for Americans.
According to Kiplinger, the White House stated, “Paper-based payments, such as checks and money orders, impose unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies.” The order further added, “Digital payments are more efficient, less costly, and less vulnerable to fraud.” The U.S. Treasury has been ordered to phase out the use of paper checks within the next six months for all federal disbursements, including tax refunds and Social Security payments.
As stated by the White House, the administration aims to “modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments.”
Ed Zollars, CPA, a partner in the Phoenix-based accounting firm Thomas, Zollars & Lynch, noted, “The reliance on paper checks has historically led to a higher incidence of loss, theft, undeliverability, or alteration compared to electronic funds transfers (EFTs).”
The fact sheet for the March 25 executive order further noted, “Mail theft complaints have increased substantially since 2020” and “Check fraud is becoming more common, with banks issuing about 680,000 reports of check fraud in 2022 – nearly double the number from 2021.”
“Maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in fiscal year 2024 alone. Digital payments are more efficient, less costly, and less vulnerable to fraud.”
.@POTUS signs an Executive Order to push the @USTreasury to modernize its payments system, in order to reduce waste, fraud and abuse:
“It’s basically modernization of equipment and methods and it’s something @SecScottBessent wanted… It’s something that should’ve been done… pic.twitter.com/mpCmaLU5TQ
— Rapid Response 47 (@RapidResponse47) March 25, 2025
While this new move pushes a complete halt on the use of paper checks, Zollars noted that some exceptions should be necessary for individuals without access to electronic payment options, certain emergencies like disaster relief payments, where relying on electronic options could cause hardship, and other circumstances related to taxpayers situations.
Regardless, Zollars emphasized, “While exceptions will exist, it is crucial for us to stay informed about the specific procedures and alternative payment methods that will be available for those who qualify.”
The American Bankers Association supported Donald Trump‘s new executive order, stating, “Despite a continued decline in business and consumer use of checks, check fraud has continued to rise.” “Electronic payments are a much faster, cheaper, and safer choice for consumers and the federal government,” said ABA President and CEO Rob Nicholas, “We look forward to working with the administration to make sure consumers are ready for this transition, which will also provide another important opportunity to further reduce the number of unbanked in the country from the current record low of 4%.”
However, as noted by Kiplinger, this new move can also pose some major challenges. Data shows that more than 450,000 individuals receive Social Security Payments, all of whom have to shift to electronic options following The Treasury’s elimination of paper checks.
BREAKING: President Trump signed an order that will stop issuing of Social Security paper checks. After Sep 30, beneficiaries will have to receive benefits via direct deposit or “other digital payment options.”
Nearly 500,000 Americans will be affected. https://t.co/oZVq28oDWC pic.twitter.com/yOCpbLeqZV
— Alliance for Retired Americans (@ActiveRetirees) March 26, 2025
However, some people, especially older adults, who are not familiar with the digital banking systems and those without a reliable internet connection may face some difficulties. It can also create hardship for those unable to make payment information changes online, as they will require in-person assistance.
However, as mentioned, Trump’s executive order also provides for a process to be developed that will address these exceptional situations.
