IRS to Phase Out Paper Checks Beginning Sept. 30, 2025
September 23, 2025
The Internal Revenue Service (IRS), in coordination with the U.S. Department of the Treasury, announced this week that individual paper tax refund checks will be phased out beginning Sept. 30, 2025, as part of Executive Order 14247. The order directs the Treasury to end the issuance of paper checks, except in limited cases such as for unbanked individuals, situations of undue hardship, or other circumstances determined by the Secretary.
According to the IRS, this change marks the first step in transitioning taxpayers to electronic payments. Most refunds will be issued through direct deposit, prepaid debit cards, or other secure methods. The agency noted that electronic payments are considered faster, safer, and more cost-effective, while paper checks are over 16 times more likely to be lost, stolen, or delayed compared to electronic refunds.
For now, the IRS emphasized that the status quo remains in place until the 2026 filing season.
Taxpayers filing 2024 returns, including those on extension through Dec. 31, 2025, should continue using existing forms and payment methods. Additional guidance for 2025 tax returns and electronic refund procedures will be issued prior to the start of the 2026 filing season.
Taxpayers are encouraged to prepare now by confirming banking details or considering opening a free or low-cost account. Helpful resources include:
During the 2025 filing season, the IRS issued more than 93.5 million tax refunds, with 93% delivered electronically. The agency’s goal is to continue expanding secure electronic refunds while ensuring options remain for taxpayers with limited banking access.
Read more about this announcement and what it means for taxpayers on the IRS website.