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The end of paper refund checks: What it means for taxpayers

Here’s how to make sure you’re prepared

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Key Insights

  • Paper refund checks are being phased out — all individual tax refunds will now be sent electronically.
  • Taxpayers must have a direct deposit account or another approved electronic payment method on file.
  • The change aims to speed up refunds and reduce fraud, but could impact taxpayers without bank access.

The Internal Revenue Service officially ended the use of paper refund checks for individual taxpayers on September 30, 2025, marking one of the biggest changes in federal tax refund policy in decades. 

The move is part of a federal modernization effort under Executive Order 14247, which requires the Treasury to transition to fully digital disbursements. Starting with the 2025 tax year, all refunds will be delivered through direct deposit, prepaid debit cards, or digital payment platforms authorized by the U.S. Treasury. 

Paper checks will no longer be mailed to taxpayers’ homes. IRS Commissioner Danny Werfel said the change will “make tax season faster, safer, and more efficient for everyone,” noting that electronic payments cost less to process and are significantly less vulnerable to mail theft and fraud.

What taxpayers need to do now

To avoid delays during the 2025 filing season, taxpayers should take the following steps:

  • Set up a direct deposit account
    Log in to your IRS online account or confirm your banking information with your tax preparer. Direct deposit remains the fastest way to receive a refund—typically within 21 days of e-filing.
  • Consider Treasury-approved alternatives
    Taxpayers without a traditional bank account can choose a prepaid debit card or a TreasuryDirect account. The IRS is also exploring partnerships with digital wallets and mobile payment providers for added flexibility.
  • Update your personal information
    Make sure your mailing address, email, and phone number are current in your IRS profile to receive electronic payment notifications or any correspondence about your refund.

Why the IRS  made the change

The IRS issues more than 120 million refunds each year, and nearly 90% are already delivered electronically. Paper checks, however, accounted for most refund-related delays and fraud cases. The agency estimates that eliminating them will save over $40 million annually in administrative and mailing costs.

The move also supports the federal government’s broader “Digital-First Treasury Initiative,” which aims to modernize payment systems and reduce environmental waste from paper processing.

The IRS has said that taxpayers facing barriers to electronic payments, such as lack of bank access or identification issues, can apply for a payment exception through the agency’s hardship program. Those cases will be reviewed individually, and refunds may still be issued via Treasury-issued debit cards instead of paper checks.

For most taxpayers, this shift probably means faster refunds and fewer headaches. But for millions of unbanked Americans, it may require setting up new payment methods or seeking help from the IRS before filing season begins.