IRS Phases Out Paper Refund Checks Starting September 2025

The Internal Revenue Service, working with the U.S. The Department of the Treasury began phasing out paper tax refund checks for individual taxpayers on September 30, 2025, as required by Executive Order 14247. The move is designed to make federal refund payments faster, safer, and more cost-efficient by transitioning most taxpayers to direct deposit or other approved electronic payment methods.

Direct Deposit and Electronic Payments Replace Paper Refund Checks

During the 2025 filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93 percent of those — nearly 87 million refunds — were delivered through direct deposit. Only 7 percent of individual refund recipients still received their refunds by paper check through the mail.

For that remaining 7 percent, this change is significant. Under the new policy, most refunds will be delivered electronically through direct deposit or other approved digital methods. Taxpayers who are unable to receive electronic payments may qualify for limited exceptions, but paper checks will no longer be the default. Refunds sent by mail may take six weeks or longer, compared to less than 21 days for returns filed electronically with direct deposit and no issues.

Updating Bank Account and Direct Deposit Information

To ensure a smooth refund experience, taxpayers should confirm that their bank account and routing numbers are accurate before filing. When a return is filed electronically with correct deposit information, refunds are typically issued within 21 days. If banking details are wrong or incomplete, refunds can be rejected or delayed.

The IRS recommends that anyone without a bank account open one with a financial institution or credit union. Resources are available at FDIC.gov/getbanked and MyCreditUnion.gov to help individuals find free or low-cost accounts. The agency has also outlined plans to support digital wallets and prepaid debit cards for individuals who cannot use traditional banking services.

Taxpayers can use their IRS online account to review previous deposits, update banking information, and access guidance as new procedures roll out.

Exceptions and Special Circumstances Under the Executive Order

While most refunds are now processed electronically, the IRS acknowledges that some taxpayers may need exceptions. Exemptions may apply to individuals without access to financial institutions, Americans living abroad, or victims of domestic violence who need to protect their financial privacy. Taxpayers who cannot receive an electronic funds transfer should contact the IRS directly for guidance. Additional information is available at IRS.gov.

The Benefits of Electronic Refunds

The shift away from paper checks addresses longstanding inefficiencies in the refund process. According to the IRS, paper checks are more than 16 times more likely to be lost, stolen, altered, or delayed than electronic payments — a concern that has contributed to refund theft and delivery problems in prior filing seasons. Direct deposit also eliminates the risk of a check being returned to the IRS as undeliverable.

"Taxpayers can expect faster refunds and fewer problems when payments go directly into verified accounts," the IRS said. "We will continue to provide additional guidance and tools as implementation proceeds."

Source Links

• The IRS provides official information, updates, and taxpayer guidance on refund delivery and electronic payment modernization at IRS.gov.
  
• Executive Order 14247, which directs federal agencies to expand electronic payment systems, is available in full on Congress.gov.

By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now