IRS Ends Paper Tax Refund Checks — All Refunds Now Digital

WASHINGTON, D.C. — In one of the most significant changes to federal tax administration in decades, the Internal Revenue Service (IRS) has officially phased out issuing paper tax refund checks to individual taxpayers — a shift that took effect September 30, 2025, and is now fully in place for the 2026 tax season.

Under an executive order aimed at modernizing federal payments and reducing fraud, costs, and delays, the IRS now delivers all tax refunds electronically, primarily through direct deposit. Paper checks will no longer be mailed to taxpayers except in very limited and legally permitted circumstances.

This marks the end of an era in which families opened their mailboxes each spring hoping to find a refund check. While over 90% of taxpayers already received refunds via direct deposit, millions of others historically relied on mailed checks. Those taxpayers must now provide valid bank account information when filing their returns to receive refunds without delay.

The IRS says the move to electronic refunds is intended to:

• Speed up refunds — direct deposits typically arrive much faster than paper checks.

• Improve security — paper checks are far more vulnerable to loss, theft, or fraud than electronic payments.

• Reduce costs — mailing and processing paper checks is significantly more expensive for the government.

Taxpayers who don’t have traditional bank accounts still have alternatives. Options such as depositing refunds onto prepaid debit cards, IRS-approved digital wallets, or programs like Direct Express are available. However, taxpayers are strongly encouraged to provide direct deposit details on their returns to avoid delays.

This transition comes with broader changes to the federal payment infrastructure, and the IRS has pledged ongoing outreach to ensure taxpayers are informed and prepared well before future filing seasons.

What this means for you:

If you normally receive a refund check in the mail, you won’t get one anymore. Instead, be ready to receive your refund through an electronic deposit method when you file your 2025 tax return in 2026.

Let me know if you want a simple checklist to help clients or family members prepare for this change!