The IRS has announced that paper tax refund checks for individual taxpayers will begin to be phased out on September 30, 2025, as required by Executive Order 14247. This is the first step in a nationwide move toward secure electronic payments.
What This Means for You
- No change to how you file. You can still file electronically or by mail as you do now.
- Refunds will move to direct deposit. Starting September 30, 2025, the IRS plans to send most refunds by direct deposit or another electronic method instead of mailing paper checks.
- If you don’t use a bank account. Treasury will provide options like prepaid debit cards or digital wallets, and limited exceptions will exist for people who can’t use electronic banking.
The IRS will share updated guidance on IRS.gov and through outreach efforts nationwide.
Why the IRS Is Making the Switch
The IRS and Treasury cite three key reasons:
- Security: Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed.
- Speed: Electronic refunds usually arrive in less than 21 days for error-free e-filed returns, while paper checks can take up to six weeks or more.
- Cost savings: Maintaining paper check systems cost over $657 million in 2024.
Steps You Can Take Now
- Check your banking info. Ensure your routing and account numbers on your return are correct.
- Need a bank account? Look into free or low-cost options. For US residents abroad, you may already be familiar with solutions — you can also check our guide on receiving your IRS refund abroad.
- Filing 2024 on extension? If you file before December 31, 2025, you may still request a paper check. Beginning with 2025 returns (filed in 2026), expect electronic refunds by default.
In the 2025 filing season, the IRS issued over 93.5 million refunds, with 93% already going by direct deposit—so most taxpayers already receive refunds electronically.
Looking Ahead
The IRS will issue detailed guidance for 2025 returns before the 2026 filing season and post updates on IRS.gov.
Executive Order 14247 also covers payments to the IRS, but for now, continue using your usual payment methods at www.irs.gov/payments.
If you’ve been relying on paper refund checks, now is the time to make sure your direct deposit info is accurate or to open a suitable account. It’s faster, safer, and soon to be the new standard.