IRS Electronic Payment Mandate: What Executive Order 14247 Means for Taxpayers in 2026

IRS Electronic Payment Mandate

With the March 25, 2025, signing of Executive Order 14247 — Modernizing Payments to and From America’s Bank Account — the Federal government is initiating a sweeping change to individual tax payments and refunds. Effective September 30, 2025, all payments and refunds made to or from the IRS must be processed electronically, in hopes of creating greater efficiency and enhanced security.

The Executive Order does not change how taxpayers file their tax returns. Taxpayers will continue to file their returns in the same manner as they have in the past. The change affects how refunds are issued and how payments are made, not how returns are prepared or submitted, beginning with the 2026 filing season. For now, checks and money orders will still be accepted.

To prepare for these changes, the IRS encourages taxpayers to:

• Use direct deposit for refunds by providing accurate bank or prepaid debit card information when filing.
• Choose electronic payment options when paying taxes, such as IRS Direct Pay.
• Setup an IRS online account to not only help manage payments, but access tax records, transcripts and more.

It is important to note that Executive Order 14247 applies only to federal payments. State-level payments are not impacted by this order and will continue to follow existing procedures.

Recent Updates & Guidance to USPS Postmark Rules

For taxpayers who choose to still mail tax payments, the IRS has issued new guidance stating that 'postmarks’ from private postage machines will not be considered timely until they are processed by USPS: 

Old Rule (Before Dec. 24, 2025)

A postmark indicated the date you dropped the mail in a USPS box or at the counter. If you mailed a tax return or payment on April 15 and it was postmarked April 15, the IRS considered it timely, even if it arrived later.

New USPS Rule (Effective Dec. 24, 2025)

The postmark now reflects the date the envelope is first processed by an automated USPS sorting machine, not the date you mailed it. Processing may occur 1–3 days after drop-off, especially if:

• You use a blue collection box
• You mail after the last pickup
• Your mail is routed to a distant processing center

Result: You could mail something on time but receive a late postmark.  A good rule of thumb is to either pay online using the IRS’s website or mail your payment well in advance of the due date.

MarksNelson Internal Deadline Reminder for Individual Tax Return Preparation

If your individual tax documents and information are not received prior to March 15^th, MarksNelson cannot guarantee the completion of your tax returns by April 15^th.  We will make every effort to complete the return by the original filing due date, but an extension may be filed to ensure a complete and accurate return is filed.

If you have questions about how Executive Order 14247 may impact your tax payments or refunds, we’re here to help. Reach out to the MarksNelson Tax Team to discuss what these changes mean for you and to ensure you’re prepared for the upcoming electronic payment requirements.