IRS Phases Out Paper Checks for Tax Refunds

Executive Order 14247 (See Sec. 3) requires the U.S. Department of the Treasury, in coordination with the Internal Revenue Service or IRS (and other federal agencies), to phase out paper tax refund checks for individual taxpayers, starting on September 30th, 2025.

If you have ever received payment from the IRS or paid them using paper checks through the mail, now is the time to switch to electronic payments.  The IRS will release additional information and guidance at IRS.gov (before the 2026 filing season) regarding 2025 tax returns.

There are a few reasons why this transition is happening.  Electronic payments will speed up the time it takes to process tax refunds, they are less costly than paper checks, and they provide more security and protection for all taxpayers.  According to the IRS, “Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments.”

So, what does this mean for individual taxpayers?

Don’t worry about filing options, as they will stay the same and are listed here.  If you do not have access to a bank account and are worried about how you will receive payments, including refunds from the IRS, there are limited options available through prepaid debit cards and digital wallets.  Please reach out to your tax professional for more information about these options.

When it comes to taxes in the United States, you want to make certain that, as a taxpayer, you are always prepared for any system changes.  ATLAS suggests taking a little extra time now to choose the right payment option for your tax returns, and any potential refunds, to ensure your money is secure during the 2026 tax filing season.

Read Executive Order 14247 (See Sec. 3) here for more details.

Update 9/23/2025: Read this article from the IRS reminding taxpayers about this transition.