IRS to Phase Out Paper Refund Checks

The IRS and Treasury Department announced that paper refund checks for individual taxpayers will begin phasing out on September 30, 2025, following an executive order signed by President Trump earlier this year. This move marks the first step in the IRS’s broader plan to shift all taxpayers toward electronic refunds. 

What this means for you:

• No changes for 2024 returns – continue filing as usual, even if on extension before Dec. 31, 2025. In other words: if you/we recently submitted, or will submit, your 2024 tax return without direct deposit information, you will still receive a paper check if you have a refund coming your way. 
• Guidance coming soon – the IRS will publish detailed instructions for 2025 returns before the 2026 filing season, and we will then be able to provide you with more information.
• Refunds will go digital – payments will be issued by direct deposit or other secure electronic methods. Taxpayers without bank accounts can use prepaid debit cards, digital wallets, or qualify for limited exceptions.

Why the change?

• Paper checks are 16x more likely to be lost, stolen, or delayed.
• Electronic refunds typically arrive in less than 21 days (vs. 6+ weeks by mail).
• Electronic payments save the government – and YOU, the taxpayer – money.

Tip: If you don’t have a checking account, consider opening one now to be ready for the switch.