On January 27, 2026, the Internal Revenue Service (IRS) published fact sheet FS-2026-02, with questions and answers about Executive Order 14247, which orders the modernization of federal government payments. The most visible consequence for you: after September 30, 2025, the IRS generally stopped issuing paper checks for individual refunds. It had announced this on September 23, 2025, in news release IR-2025-94.
This matters in Puerto Rico because thousands of families file Form 1040-SS every year to claim the refundable portion of the child tax credit (Additional Child Tax Credit) and receive a refund from the IRS. To understand that return, see the child tax credit in Puerto Rico.
What changed
- Refunds. Most arrive by direct deposit or another electronic method. The 2025 Form 1040-SS instructions already warn that, since October 2025, the IRS generally does not issue paper checks for federal payments, and they recommend direct deposit if you have access to an account at a U.S. bank.
- Speed. The IRS says most electronic refunds are issued in less than 21 days if you file electronically, choose direct deposit and the return has no problems. A check by mail can take six weeks or more.
- Exceptions. The IRS says there will be limited exceptions for specific situations, such as financial hardship or legal requirements.
If your return has no bank account
According to FS-2026-02:
- The IRS accepts and processes the return anyway.
- It mails you, at your last known address, a CP53E notice, which asks you to respond within 30 days with your bank information or a request for an exception.
- When you respond, the refund is released right away, by direct deposit, or by check if the exception was approved.
- If you do not respond and there are no other problems, the refund is issued as a paper check after six weeks.
The IRS makes clear that it will not call you or text you to ask for your bank information about this. If someone does, it is a sign of a scam. Read how to spot tax scams.
If you do not have a bank account
The executive order allows for alternatives such as some mobile apps and prepaid debit cards. The IRS also points to resources for opening free or low-cost accounts, such as FDIC GetBanked and MyCreditUnion.gov.
Payments to the IRS
For now, the IRS still accepts checks and money orders as payment. What did change: since October 17, 2025, individuals cannot create new enrollments in EFTPS, and the IRS says EFTPS payment options for individuals will end in late 2026. If you are self-employed and make estimated payments of self-employment tax, review Social Security for the self-employed.
What about Hacienda
This change comes from the IRS. Puerto Rico's Departamento de Hacienda (Treasury Department, "Hacienda") has its own rules for state return refunds. To see which federal returns apply to you, read Puerto Rico residents and the IRS.
Frequently asked questions
Do I lose my refund if I filed Form 1040-SS without a bank account?
No. The IRS processes the return and asks you for the information with the CP53E notice. If you do not respond, and there are no other problems, you will receive a check after six weeks.
When did refunds with the child tax credit arrive in 2026?
The IRS said most refunds with the federal earned income tax credit or the Additional Child Tax Credit would be in accounts by March 2, 2026, for those who chose direct deposit and had no other problems.
Does this change how Hacienda pays my refunds or the tax relief payment?
No. Executive Order 14247 applies to federal government payments. Hacienda follows its own processes. For example, for the 2025 tax relief payment, it said that anyone without a bank account will receive a check by mail.
Sources
- IRS, "IRS to phase out paper tax refund checks starting with individual taxpayers" (IR-2025-94). irs.gov
- IRS, "Questions and answers about Executive Order 14247: Modernizing Payments To and From America's Bank Account" (FS-2026-02). irs.gov
- IRS, "IRS opens 2026 filing season" (IR-2026-12). irs.gov
- IRS, "Instructions for Form 1040-SS (2025)". irs.gov
- Departamento de Hacienda, "Guía sobre el Cheque de Alivio Contributivo para los Trabajadores y la Clase Media del Año Contributivo 2025". hacienda.pr.gov
787TAX is an independent guide. It is not Puerto Rico's Departamento de Hacienda, the CRIM or the IRS. This page is general information, not tax or legal advice. Example figures are hypothetical. Found an error? Tell us.
