The IRS has announced a major change that will impact how individual taxpayers receive their refunds. Beginning September 30, 2025, the IRS will no longer issue paper refund checks. This move is part of a broader federal initiative aimed at improving security, reducing fraud, and streamlining payment processes.

 

Why the Change?

This update stems from Executive Order 14247, signed earlier this year, which directs federal agencies to transition to electronic payment systems. According to the IRS, the shift away from paper checks is intended to:

• Enhance security and reduce the risk of fraud
• Lower administrative costs
• Increase efficiency in processing refunds

Currently, about 93% of tax refunds are already issued via direct deposit, making this transition a natural next step.

 

What Are the Alternatives?

If you’re not set up for direct deposit, or prefer not to use it, the IRS will offer several electronic alternatives:

• Prepaid debit cards
• Digital wallets
• Limited exceptions for emergency situations where electronic payment would cause undue hardship

These options are designed to ensure that all taxpayers can receive their refunds securely and promptly, even without a traditional bank account.

 

What About Payments to the IRS?

Executive Order 14247 also applies to payments made to the IRS. While paper checks are still accepted for now, this is expected to change in the near future. Taxpayers should begin preparing for a fully electronic payment system.

 

What Should You Do Now?

If you’re expecting a refund and are not currently set up for direct deposit, now is the time to take action. Talk to your tax advisor or financial professional about updating your refund delivery method. Being proactive will help ensure you receive your refund without delays or complications once the new policy takes effect.

 

Final Thoughts

While this announcement currently applies to individual taxpayers, the Executive Order does not distinguish between individuals and businesses—so similar changes may be on the horizon for business-related payments and refunds.

 

Need help updating your refund delivery method or have questions about how this change affects you? Reach out to our team, we’re here to guide you through the transition.