Executive Order 14247: How the End of Paper Checks Impacts Mobility Programs

March 17, 2026

Michelle Mara

Note: This blog was most recently updated with new information in March 2026. It was originally published on September 8, 2025.

What’s New (Updated March 2026):

IRS FAQs released: In January 2026, the IRS published official questions and answers clarifying how Executive Order 14247 will be implemented, including timelines, electronic payment options and limited exceptions to the paper check phase-out.
Phase-out confirmed and underway: The IRS confirmed that paper checks for tax refunds and other federal disbursements began phasing out on September 30, 2025, with electronic payments now the default method for nearly all taxpayers.
Current procedures remain: The guidance confirms that tax return filing methods remain the same. The changes apply only to how refunds are issued and how payments are made, beginning with the 2026 filing season.

Federal payments are going digital. Beginning September 30, 2025, paper checks for IRS refunds and federal disbursements began to be phased out. IRS guidance released in January 2026 confirms how this transition will unfold. Mobility programs should take action now to ensure employees’ banking, tax and payroll processes stay seamless.

What’s changing

Starting September 30, 2025, paper checks for federal disbursements, including IRS refunds and tax payments, began to be phased out, marking the first step in the IRS’s broader move to electronic payments. Executive Order 14247 dictates that electronic channels such as Direct Pay, EFTPS, IRS Online Account, ACH, and debit/credit card processors will become the required standard. While a few narrow exceptions exist, nearly all mobile employees will need to transact electronically.

For relocating employees, this change impacts how and when they receive refunds or make payments. Ensuring U.S. bank accounts are active, up-to-date, and properly documented is critical. Employees may need guidance navigating these digital-only processes, especially if they are experiencing them for the first time.

Why it matters

The transition is about more than compliance—it directly shapes the employee experience during relocations. Key considerations include:

Employee access and continuity: Mobile employees must maintain secure banking options to receive refunds and pay taxes electronically.
Identity verification and timing: Online IRS payments require personal data, making timely submission of remittance statements essential.
Clear communication: Employees benefit from proactive guidance on how payments and refunds will be handled.
Operational alignment: Payroll, tax providers, and mobility programs must coordinate to prevent delays and ensure smooth processes.
Risk Mitigation: Incorrect banking information will cause delays or disruptions.

By addressing these areas, mobility programs can reduce friction, minimize stress, and maintain a positive employee experience while meeting compliance requirements. This is an opportunity to make digital transitions feel seamless, rather than disruptive, for relocating employees.

Example: Imagine an employee who is relocating from overseas and does not yet have a U.S. bank account, or someone who closed their U.S. account when leaving for a long-term assignment. In either case, these employees may face delays in receiving IRS refunds or making tax payments electronically. Mobility teams should proactively identify such situations and provide step-by-step support to ensure compliance and continuity.

What do I need to do?

With IRS guidance now available, the shift to electronic federal payments is underway. Beginning September 30, 2025, paper checks started to be phased out. Mobility programs should use this lead time to confirm readiness — not only from a systems and compliance standpoint, but also in terms of the employee experience.

Verifying banking details, aligning payroll and tax processes, and ensuring employees understand the steps they need to take are essential for maintaining confidence and minimizing disruption. While the transition to digital payments is operationally necessary, its true success will be measured by how smoothly it supports employees throughout their mobility journey. Here's how to get ready:

Review and confirm employee banking information to guarantee accuracy and completeness.
Refresh onboarding and relocation resources to reflect updated payment procedures.
Communicate early and often with employees about upcoming changes and preparation steps.
Collaborate with payroll and tax partners to synchronize systems and timelines and create and conduct readiness assessments to proactively address any issues.

This shift is a reminder of how important it is for mobility programs to maintain seamless compensation processes that support both compliance and the employee experience. Graebel’s Compensation Services are designed to simplify payroll, tax and reimbursement complexities, helping organizations stay ahead of changes while ensuring employees feel confident throughout their journey. If you’d like to explore how we can support your program, please reach out—we’re here to help.