IRS Phasing Out Paper Checks:
Beginning September 30, 2025 the IRS will begin phasing out paper tax refund checks for individual taxpayers in accordance with Executive Order 14247. This transition is designed to enhance security, reduce administrative costs, and improve efficiency by shifting to direct deposit as the primary method of refund delivery.
Why This Matters:
The move to electronic refunds aims to protect taxpayers from common issues associated with paper checks, such as loss, theft, alteration, or missed delivery. By depositing refunds directly into bank accounts, the IRS can ensure faster, safer, and more reliable transactions.
What you need to know for the 2025 Tax Season:
When filing your 2025 tax return, you’ll be required to provide your bank’s routing and account number to receive your refund via direct deposit. Direct deposit is meant to significantly shorten the refund timeline with many refunds issued within 21 days of electronic filing, compared to the 6-week timeline for paper checks.
If you do not have a bank account that supports direct deposit, the IRS has announced that they will provide alternative options including prepaid debit cards, digital wallets, and limited exceptions may be available for special circumstances.
Changes to IRS Payment Methods:
Executive Order 14247 also applies to payments that are made to the IRS “as soon as practicable”. Taxpayers who owe a balance or make quarterly payments must now authorize automatic ACH withdrawal at the time of filing their return or use the IRS.gov payment site to submit payments electronically. This shift is intended to streamline payment processing and reduce reliance on manual check handling.
If you have any questions regarding automatic refunds or payments, please reach out to us at Guidance First Tax and Financial Services for further details.
Internal Revenue Service. (2024, September 20). IRS to phase out paper tax refund checks starting with individual taxpayers. U.S. Department of the Treasury. https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers