The IRS Has Eliminated Paper Refund Checks

The IRS announced today that paper tax refund checks will no longer be issued for individual taxpayers, starting this month. Instead, if you previously received your tax refund via a paper check, you will now receive it electronically. This shift will also affect payments to the IRS.

You’re encouraged to file your taxes using current filing methods as usual. The IRS plans to provide details about the 2025 tax returns before the filing season for 2026 starts.

According to the agency, “Until further notice, taxpayers will need to continue using existing forms and procedures, including those who submitted requests for extensions of 2024 returns before December 31, 2025.” If you don’t currently have a bank account for direct deposit, you might want to consider opening a free or low-cost option. Options can be found at resources like FDIC: GetBanked and MyCreditunion.gov.

This change signifies the beginning of a larger shift towards electronic payments. Following an executive order from President Trump, federal agencies have been directed to transition most payments to digital formats, as paper checks are seen as less efficient and more prone to issues like delays, fraud, and theft. The IRS reported that paper checks are 16 times more likely to get lost or delayed compared to electronic options.

In terms of efficiency, the IRS noted that 93% of personal income tax refunds from the 2025 tax season were issued via direct deposit, leaving just 7% to be sent through the mail. Electronic payments can typically be processed in less than 21 days, while paper checks may take over six weeks.