In a letter sent to the Department of the Treasury, the AICPA offered feedback and recommendations for comments about the implementation of Executive Order 14247, Modernizing Payments To and From America’s Bank Accounts.
The order requires the Secretary of the Treasury to cease issuing paper checks for all federal disbursements and requires all payments made by the federal government to be electronically processed. It also requires the cessation of paper checks by Tuesday, Sept. 30, aiming to enhance efficiency and reduce costs.
The adoption of an electronic system for federal disbursements and receipts would increase efficiency, reduce costs and significantly diminish the occurrence of lost or stolen checks, the AICPA said.
The AICPA has supported the transition to electronic payments for federal disbursements and receipts; however, there are challenges with implementing a system that requires taxpayers to have a U.S. bank account to participate. See the AICPA’s recommendations.