In March 2025, the President signed Executive Order (EO) 14247 directing the U.S. Treasury and IRS to modernize federal payment systems. As of September 30, 2025, all federal tax payments and refunds must now be made electronically. This requirement applies to all taxpayers, including trusts that have traditionally paid taxes by check or received refund checks through the mail.

The purpose of this Executive Order

EO 14247 is designed to secure and modernize payment systems by reducing reliance on paper checks, which are more likely to be lost, stolen, or delayed than electronic payments. Moving to electronic delivery helps ensure funds reach the correct accounts faster, reduces operational costs, and strengthens safeguards against fraud. There are very limited exceptions given to those without access to bank accounts or other constraints.

Important next steps for your trust

1. Make sure your trust can pay electronically

If your trust already has a checking or brokerage account that supports electronic transfers, confirm it is active and properly titled for the trust.

If your trust does not currently have a checking account or electronic payment capability, consider:

• Opening a dedicated trust checking account, or
• Enabling ACH debit (electronic withdrawal) on an existing brokerage or investment account.

Having an eligible account in place is essential for both making payments and receiving refunds.

2. Enroll in EFTPS for federal tax payments

The IRS’s preferred electronic payment method is the Electronic Federal Tax Payment System (EFTPS). It is free, secure, and allows you to schedule payments up to a year in advance.

To enroll:

• Visit the EFTPS website
• Have the trust’s EIN ready
• Provide the account information for the checking or brokerage account you will link.
  Enrollment typically takes about 5–7 business days, since a PIN is mailed to the trust’s address on record for verification.

Alternative option: Trusts may also submit tax payments via ACH electronic funds withdrawal when filing electronically, using a compatible trust checking or ACH-enabled brokerage/investment account.

It’s important to plan now for how your trust will submit its tax payments to avoid a late or rejected payment that could result in penalties or additional interest owed.

Receiving tax refunds

Under the EO, refunds are also now issued electronically. If your trust expects a refund, confirm you have an active bank or brokerage account that can receive direct deposit and that routing/account details are up to date.

We’re here to help

We understand that you may have questions about what EO 14247 means for your trust and how to ensure compliance. Our team is here to provide guidance and support.

As always, please stay alert for scams during periods of policy change. The IRS will not email or text to request banking information or demand immediate payment. If something seems off, pause and verify before responding.

If you have any questions or need guidance as you navigate this transition, please reach out to your SEK Client Relationship Manager or complete the form below if you are in need of estate & trust services.