IRS Goes Digital: Paper Tax Refund Checks to Be Phased Out

Earlier this year, we shared news about the U.S. Treasury’s directive to stop issuing and accepting paper checks. Now, the IRS has taken a major step in that direction by announcing it will begin phasing out paper tax refund checks starting September 30, 2025.

This change is part of Executive Order 14247, which aims to modernize federal payment systems, reduce fraud, and improve efficiency. According to the IRS newsroom, the transition will begin with individual taxpayers and expand over time to include all refund types.

What Does This Mean for Taxpayers?

If you’ve already filed your 2024 (or prior year) tax return and did not provide direct deposit information, you may still receive a paper check—as long as your return is processed before September 30. After that date, the IRS will no longer issue paper refund checks.

Instead, taxpayers will receive refunds through electronic payment methods, including:

• Prepaid debit cards

• Digital wallets

• Other secure electronic platforms

What You Should Do Now

• Include direct deposit info when filing your tax return.

• If your return is already filed, contact the IRS at 800-829-1040 to update your payment details.

• Ensure your mailing address is current in case you receive a prepaid card or other form of electronic payment.

• Track your refund using the IRS’s “Where’s My Refund” tool.

If you don’t have a bank account, the IRS recommends visiting FDIC’s GetBanked or MyCreditUnion.gov to explore free or low-cost banking options.

Final Thoughts

This update reinforces the federal government’s commitment to digital transformation. We certainly expect more changes will be coming. So we encourage you to take necessary steps to ensure your refund arrives without delay. Related to this, if you don't have an IRS Online Account, now is the perfect time to set one up. See this post for more information or contact us if you need assistance.