IRS to Phase Out Paper Tax Refund Checks Starting September 30, 2025

by | Oct 10, 2025 | Federal Tax, Main Tax Min, Tax Minimization, Tax News | 0 comments

The IRS will begin phasing out paper tax refund checks starting September 30, 2025, in favor of faster, safer, and more cost-effective electronic payments. Make sure your banking info is up to date and appropriate accounts are set up to receive refunds electronically.

In a move toward modernization, the Internal Revenue Service (IRS) and U.S. Department of the Treasury have announced the planned phase-out of paper tax refund checks for individual taxpayers beginning September 30, 2025, in accordance with Executive Order 14247.

Why the Change?

The transition to electronic payments is driven by three key goals:

  • Protecting Taxpayers
    Paper checks are 16 times more likely to be lost, stolen, altered, or delayed compared to electronic payments. Direct deposit also reduces the risk of refund checks being returned as undeliverable.
  • Speeding Up Refunds
    Taxpayers who file electronically and opt for direct deposit typically receive their refunds in less than 21 days, while paper checks can take six weeks or longer.
  • Reducing Costs
    Electronic payments are more efficient and cheaper to process than paper checks.

What Taxpayers Need to Know

For now, filing procedures remain unchanged. Taxpayers should continue using existing forms and filing methods, including those submitting 2024 returns on extension before December 31, 2025.

Refunds will be issued digitally. The IRS will use direct deposit and other secure electronic methods. Alternatives will be available for those without access to traditional banking services, including prepaid debit cards and digital wallets. The IRS has indicated that limited exceptions will apply.

Takeaway

Executive Order 14247 mandates a shift to electronic payments for IRS transactions. While current payment options remain unchanged for now, further guidance is expected before the 2026 filing season. To prepare, those taxpayers who are not currently ready to interact with the IRS electronically should set up their systems to do so. This includes ensuring banking information is accurate or the appropriate accounts are set up to receive refunds electronically.

Stay informed by visiting IRS.gov/modernpayments.

Disclaimer: This content is for educational purposes only and is not intended, nor should it be relied upon, as legal, tax, accounting or investment advice. You should consult with a competent professional to discuss specifics of your situation and the applicability of the information presented. 

Talk to a Business Tax Advocate

Read more

Follow Follow