IRS to Transition to Electronic Refund Payments

The Internal Revenue Service has announced that starting Tuesday, September 30th, it will begin a gradual shift away from paper tax refund checks. This change is part of an executive order issued by President Donald Trump back in March.

The agency stated that moving to electronic payments is intended to enhance taxpayer protection, speed up federal revenue collection, and reduce overall costs.

Before the 2026 filing season kicks off, the IRS plans to publish comprehensive guidance regarding the 2025 tax returns. However, taxpayers will need to stick to existing forms and procedures, especially those who filed an extended return for 2024 due by December 31, 2025.

Interestingly, the IRS highlighted that paper checks are significantly more likely—16 times more, in fact—to be lost, stolen, altered, or delayed compared to electronic payments.

Electronic payments are also much quicker. For individuals who receive payments electronically, it typically takes about 21 days, whereas a paper check might take over six weeks to reach the recipient.

Furthermore, the IRS indicated that this transition to electronic payments could yield savings for the federal government.

The agency reiterated that the application process for taxpayers remains unchanged, and people should continue to file their returns as they normally would.

For those without access to personal bank accounts, the IRS provides other secure alternatives, like prepaid debit cards or digital wallets, along with limited exceptions to the paperless rule.

To avoid issues, the IRS encouraged taxpayers to double-check the accuracy of their submitted bank information.

“Most individual taxpayers have already received a refund during 2025 via direct deposit,” the IRS noted. They reported that over 93.5 million tax refunds had been issued, with 93% of those processed through direct deposit.