IRS Phases Out Paper Tax Refund Checks

The Internal Revenue Service, working with the Department of the Treasury, announced intentions to phase out paper tax refund checks to individual taxpayers beginning September 30. As part of President Trump’s executive order “Modernizing Payments To and From America’s Bank Account,” this is the first step of a broader transition to electronic payments.

While filing remains the same, most refunds now are delivered by direct deposit or other electronic methods. For individuals without access to bank accounts, other options including pre-paid debit cards or digital wallets are available.

This change is meant to protect tax payers, according to a press release from the IRS, as paper checks are reportedly over 16 times more likely to be lost, stolen, altered or delayed than electronic payments. Electronic refunds also give taxpayers faster access to refunds. Direct deposit payments may be issued in less than 21 days if filed electronically. Electronic payments are also more cost-efficient.

Most individual taxpayers already receive their tax refunds digitally according to IRS statistics. During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers. Only 7 percent of individual refund recipients received their refunds by check through the mail.

The IRS will publish further detailed guidance for 2025 tax returns before the 2026 filing season begins. Until then, the government service urges taxpayers — including those still filing their 2024 returns — to use existing forms and procedures.