The IRS has started to gradually eliminate paper refund checks, following an executive order issued by President Donald Trump earlier this year.
Beginning in March, the agency will mainly suspend paper refund checks and instead promote digital methods, such as direct deposits.
This move to eliminate paper refund checks marks the first step towards a more modernized payment system, as stated by the IRS.
Detailed guidance regarding tax returns for 2025 is expected to be released before the 2026 application season starts. Until then, taxpayers will need to stick with current forms and procedures.
Here’s what this change means for taxpayers, according to the IRS:
- Filing process unchanged: Taxpayers should continue to file their returns using one of the existing options.
- Refunds: Most refunds will now be sent through direct deposits or other secure electronic methods.
- Bank account needed? The IRS does offer alternatives like prepaid debit cards and digital wallets. There are also limited circumstances where paper checks may still be accepted.
It’s important for taxpayers to have their bank details on hand. Those who don’t have traditional accounts might want to explore free or low-cost banking options.
This shift is likely to speed up refunds, as electronic payments are processed faster than paper checks. The IRS mentions that transitioning to electronic methods can also save on costs.
Currently, a significant percentage of individual taxpayers—about 93% during the 2025 filing season—are already receiving their refunds through direct deposits.
Moreover, Trump’s directive covers payment processes too, indicating that the IRS will eventually cease acceptance of paper checks. Nevertheless, all current payment methods will still remain operational for the time being.
The IRS intends to provide additional information in the coming months.
During his time in office, Trump and his administration have introduced various modifications to US tax policy, including the passage of substantial bills that brought in significant tax cuts during his first term.
