The IRS recently has announced that starting September 30, 2025, it will begin phasing out paper refund checks for all taxpayers and transition entirely to electronic refunds. This change is driven by a new executive order aimed at modernizing and streamlining the IRS refund process.

The IRS has stated that this change is designed to protect taxpayers as paper checks, “are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments” (IRS). Switching to electronic refunds also eliminates the risk of refund checks being returned to the IRS as undeliverable. Additionally, electronic refunds reach taxpayers faster — while paper checks can take 6 weeks or more to arrive, direct deposits are typically processed much sooner.

Although refunds are transitioning from paper to electronic, you can continue filing your federal tax return as you always have. Going forward, most refunds will be issued by direct deposit instead of the mail. However, if you don’t have access to a bank account, you have options — refunds can be received through prepaid debit cards, digital wallets or limited exceptions will be available. 

The IRS plans to phase out check payments, but future guidance will be provided for filing 2025 taxes ahead of the 2026 tax deadline. In the meantime, the IRS states, “Taxpayers should continue to use existing payment options until further notice” (IRS).

This information has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for tax, legal, or accounting advice. If you have any questions regarding the phasing out of paper refund checks, please do not hesitate to contact us at Lear & Pannepacker.