IRS Chief Counsel Updates Procedures for Electronic Payment of Litigation Cost Awards

The IRS Office of Chief Counsel updated procedures for paying awards of litigation and administrative costs under I.R.C. §7430, replacing its prior preference for paper checks with a preference for electronic funds transfer (EFT). The update implements Treasury regulations requiring electronic federal disbursements and Executive Order 14247 mandating transition to electronic payments by Sept. 30, 2025. Under the revised procedures, field attorneys must obtain specified payment information using new forms and complete an Award Data Sheet for processing through the Bureau of the Fiscal Service. The notice also clarifies procedures for identifying the Person Entitled to Payment and the Payee ...