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IRS to Phase Out Paper Tax Refund (and Tax Payment) Checks Starting With Individual Taxpayers

In its contiuning efforts to implement Executive Order 14247, the Internal Revenue Service (IRS) recently announced that it will phase out paper tax refund (and paper tax payment) checks for individual taxpayers beginning on September 30, 2025. This marks the first step of the broader transition to electronic payments. However, the implementation date may be deferred by the IRS until the 2025 tax filing season beginning in 2026 when the IRS plans to publish additional guidance.

Until that time, according to the IRS, taxpayers should continue using existing forms and procedures, including those filing their 2024 returns on extension of a due date prior to December 31, 2025.

The change is designed to:

  • Protect taxpayers: Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments. Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.
  • Speed up refunds: Electronic refunds give taxpayers faster access to refunds, with payments issued in less than 21 days if filing electronically, choosing direct deposit, and there are no issues with the return, whereas nonelectronic payments may take 6 weeks or longer for refunds sent by mail.
  • Cut costs: Electronic payments are more efficient and cost less than paper.

What this means for individual taxpayers:

  • Filing stays the same: Taxpayers should continue to file their returns as they normally would, using one of the existing filing options.
  • Refunds go digital: Most refunds will be delivered by direct deposit or other secure electronic methods.
  • Help for those without access to bank accounts: Options such as prepaid debit cards, digital wallets, or limited exceptions will be available.
  • Act now: Taxpayers should make sure they know their banking information or consider opening a free or low-cost account. Visit FDIC: GetBanked and MyCreditUnion.gov for account options.

Most individual taxpayers already receive their refunds by direct deposit into their bank accounts. During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7% of individual refund recipients received their refunds by check through the mail.

Next Steps

Executive Order 14247 also applies to payments made to the IRS. To date, there are no changes being made to how payments to the U.S. Treasury should be made. As mentioned above, taxpayers should continue to use existing payment options until further notice, and the IRS will issue additional guidance and information for filing 2025 taxes prior to the 2026 filing season.

We will keep you informed once the IRS shares their updated guidance.  In the meantime, if you have any questions or concerns, please contact us.

Santora CPA Group
Call us 302-737-6200