TXCPA Committee Urges Treasury to Delay Mandatory Electronic Payments
TXCPA’s Federal Tax Policy Committee responded to the Request for Information relating to Executive Order 14247, “Modernizing Payments To and From America’s Bank Account,” that requires a transition to fully electronic disbursements.
TXCPA’s Federal Tax Policy Committee responded to the Request for Information relating to Executive Order 14247, “Modernizing Payments To and From America’s Bank Account,” that requires a transition to fully electronic disbursements. Although the EO covers all payments to and from the U.S. Treasury, the committee’s response relates primarily to payments related to federal tax matters.
The committee’s letter addresses the current difficulty that taxpayers have in making tax payments, alternatives to checks and bank transfers for payments of tax and receipt of refunds, and the necessity for specifically identifying payments for tax and payments for penalties. We also ask for a delay in implementation from the proposed deadline of Sept. 30, 2025, to after Jan. 15, 2026, with further extension of time for small tax payments.
Compliance with this EO and the short timeframe will cause confusion with taxpayers and TXCPA sought to alleviate some of the anticipated problems, urging Treasury to adopt a phased, flexible and taxpayer-friendly approach.
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