The Treasury Inspector General for Tax Administration released a report on the Internal Revenue Service's progress implementing an executive order requiring federal payments and receipts to be conducted electronically.
President Biden signed Executive Order 14247 in March 2025, directing federal agencies to make payments and receipts electronic with exceptions for individuals facing undue hardship.
According to the report, 88 percent of tax transactions—654 million of 743 million—were conducted electronically in Processing Years 2024 and 2025. Individual taxpayers accounted for most paper transactions during that period.
The IRS has taken steps to increase electronic compliance, including redesigning business tax forms to allow taxpayers to input banking information and updating notices and online services to help individuals understand the executive order. The agency also updated account features to enable businesses to provide banking information.
However, several challenges remain. The report identified unbanked individuals, taxpayers with certain religious beliefs and those with limited technology access as barriers to full electronic compliance. The IRS also needs to further increase public awareness, modify additional tax forms, notify affected business taxpayers and update features to allow businesses to enter banking information.