Changes to Tax Refunds This Season

Tax season is upon us, and the IRS is alerting Americans to significant updates regarding their tax refunds this year.

In March 2025, President Trump issued an executive order aimed at modernizing how payments move to and from American bank accounts. This mandates the IRS and other federal bodies to phase out paper checks, with some very limited exceptions. This shift toward electronic payments will influence both government payments and tax refunds issued by the federal government.

Federal officials say the motivation for this change, according to IRS Chief Executive Officer Frank J. Bisignano, is to “reduce fraud, improve security, lower costs, and enhance the speed and reliability of payments to and from the IRS.”

The IRS believes that electronic payments are typically quicker, come with lower processing costs, and minimize errors compared to traditional paper options. There will be a few exceptions, but only under special circumstances or legal requirements.

How Will Filing Change?

There aren’t any changes in the way taxpayers file their returns, but the handling of refunds and payments is different. The IRS will still accept checks and money orders for now, though it hasn’t specified for how much longer this will be the case.

For those who don’t have bank accounts, there are electronic payment methods available, including mobile apps and prepaid debit cards.

Refunds shouldn’t be delayed because of the move to electronic payments. If you apply electronically with direct deposit, you could see your refund in as little as 21 days, assuming there aren’t other issues with your application.

However, if taxpayers don’t provide their direct deposit information, it could lead to delays in receiving their refunds. The IRS will notify taxpayers via letter if any information is missing.

What Should Taxpayers Do Now?

The IRS suggests a few steps for taxpayers to accommodate these changes:

• Use direct deposit for refunds and make sure to input accurate bank or prepaid debit card information.
• Select electronic payment options when paying taxes, such as IRS Direct Pay, the federal electronic tax payment system, or any approved method.
• Verify that your account information is current and accurate to avoid issues.
• For more details on electronic payments, check out IRS.gov for options and resources for unbanked taxpayers.

For additional questions regarding these changes, refer to the frequently asked questions.