Treasury Seeks Input on Executive Order Ending Paper Checks

‍Glen Frost’s Takeaways:

This Executive Order mandates a complete transition to electronic payments for all federal disbursements, including tax refunds, by September 30, 2025. This policy shift requires proactive client management to prevent significant disruptions.

• Proactive Verification: We must advise clients to immediately confirm that their banking information on file with the IRS and other federal agencies is accurate, as the paper check fallback will no longer exist.
• Vulnerable Client Risk: Elderly, unbanked, or less tech-savvy clients are at high risk of having benefits interrupted. We need to be prepared to guide them through setting up electronic payment methods.
• Advocacy Opportunity: The current request for information is a critical window for tax professionals to submit comments highlighting these practical hurdles and advocating for robust support systems for those who will be most affected.

Ultimately, this move toward efficiency places a new burden on advisors and taxpayers to ensure data accuracy and to protect the most vulnerable from being left behind.