IRS to Phase Out Paper Refund Checks Starting September 30, 2025
Overview
In a major update from Washington, the Internal Revenue Service (IRS), in collaboration with the U.S. Department of the Treasury, has announced that paper tax refund checks for individual taxpayers will be phased out beginning September 30, 2025. This change is mandated by Executive Order 14247, and will be implemented to the extent permitted by law.
This marks a significant step toward a fully digital refund system, aligning with broader efforts to modernize federal payment processes.
Key Highlights
Why the Change?
- Enhanced Security: Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed compared to electronic payments.
- Faster Refunds: Electronic refunds are typically issued within 21 days when filing electronically and choosing direct deposit. Paper checks may take 6 weeks or longer.
- Cost Efficiency: Electronic payments reduce administrative costs and improve processing efficiency.
What Taxpayers Need to Know
- Filing Process Remains Unchanged: Continue using current forms and procedures, especially for 2024 returns filed on extension before December 31, 2025.
- Refunds Go Digital: Most refunds will be issued via direct deposit or other secure electronic methods.
- Support for Unbanked Individuals: Alternatives such as prepaid debit cards, digital wallets, and limited exceptions will be available.
- Take Action Now: Ensure your banking information is up to date or consider opening a free or low-cost account. Visit:
- FDIC: GetBanked
- MyCreditUnion.gov
By the Numbers
During the 2025 tax season:
- The IRS issued over 93.5 million refunds to individual filers.
- 93% (nearly 87 million) were delivered via direct deposit.
- Only 7% received paper checks by mail.
Next Steps
- Payments to the IRS: Executive Order 14247 also applies to payments made to the IRS. Continue using existing payment options until further notice.
- Future Guidance: The IRS will release detailed instructions for 2025 tax returns before the 2026 filing season begins.
- Stay Informed: Visit IRS.gov/modernpayments for updates and nationwide outreach efforts.
THE PRESS CENTER
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Headline: IRS to Phase Out Paper Refund Checks Starting September 30, 2025
Source: IRS.gov/News
Reference: IR-2025-94 | Date: September 23, 2025
