I wanted to share an important update from the IRS that may affect how you receive your federal tax refund from now on.
Last March, President Donald Trump issued an executive order directing federal agencies to transition to electronic payments whenever permitted by law. As part of this change, the IRS began phasing out paper refund checks for individual taxpayers on September 30, 2025.
Looks like paper checks are officially joining fax machines and floppy disks in the ranks of obsolescence as we move further into a digital world!
The good news is that nothing is changing about how you file your tax return. What is changing is how most refunds are issued.
How IRS Refunds Will Be Paid
Going forward, most IRS refunds will be paid by direct deposit into a taxpayer’s bank account. For those without access to traditional banking, refunds may also be issued through approved digital options such as prepaid debit cards, digital wallets, or mobile payment apps. Paper checks will still be issued in limited circumstances.
The IRS is making this change because electronic payments are significantly safer and faster. Paper checks are far more likely to be lost, stolen, delayed, or returned as undeliverable. Refunds sent by direct deposit are typically received within 21 days, while mailed checks can take six weeks or longer.
For most taxpayers, this won’t feel like a big change. In fact, during 2025, 93% of IRS refunds were already issued by direct deposit, with only 7% paid by paper check.
Limited Exceptions
The IRS will continue issuing paper checks for individuals who receive a waiver due to lack of access to banking or electronic payment systems, certain emergency situations, national security or law enforcement needs, or other circumstances determined by the Treasury Department. The IRS has indicated it will provide ways for taxpayers to request a waiver by phone or through their online IRS account.
What You Should Do Now
If you have already been receiving your refunds electronically—nothing!
If not, it’s a good idea to arrange for any future tax refunds to be sent by direct deposit. This can be done when filing your return by providing valid routing and account numbers.
Direct deposit can be made to:
- Checking or savings accounts,
- IRAs (traditional, Roth, or SEP),
- Health savings accounts (HSAs), or
- Coverdell education savings accounts.
Refunds can also be split among up to three accounts. Most tax preparation software supports this feature, and paper filers can use IRS Form 8888.
If banking information is not provided, the IRS may request it later—and while refunds will still be issued, doing so could result in a six-week delay.
For those without a bank account, federal resources are available to help open one or to receive funds through approved digital methods.
If you have any questions about how this change may affect you, or if you’d like help setting up direct deposit for your refund, please don’t hesitate to reach out. I’m always happy to walk you through your options and make sure everything is handled smoothly.
