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Most taxpayers already receive refunds electronically. During the 2025 filing season, 93% of individual tax refunds were issued through direct deposit.
WASHINGTON — The Internal Revenue Service will phase out paper tax refund checks for individual taxpayers beginning Sept. 30, following a presidential executive order aimed at modernizing federal payments.
The change affects individual income tax filers and represents the first step in a broader federal transition to electronic payments mandated by Executive Order 14247, which President Donald Trump signed in March.
Paper checks are more than 16 times as likely to be lost, stolen, altered or delayed compared with electronic payments, according to the IRS. The shift is designed to speed refunds, reduce costs and better protect taxpayers.
“Electronic refunds give taxpayers faster access to refunds, with payments issued in less than 21 days if filing electronically, choosing direct deposit and there are no issues with the return,” the IRS said in a news release. Paper refunds can take six weeks or longer.
Most taxpayers already receive refunds electronically. During the 2025 filing season, 93% of the more than 93.5 million individual tax refunds were issued through direct deposit. Only 7% of refund recipients received checks by mail.
The IRS will publish detailed guidance for 2025 tax returns before the 2026 filing season begins. Taxpayers should continue using existing forms and procedures for now, including those filing 2024 returns on extension before Dec. 31.
Most refunds will be delivered by direct deposit or other secure electronic methods. For taxpayers without bank accounts, options will include prepaid debit cards, digital wallets or limited exceptions.
The agency recommends taxpayers ensure they have current banking information or consider opening accounts. Resources are available through the FDIC and MyCreditUnion.gov.
Executive Order 14247, signed by President Donald Trump in March, requires federal agencies to eliminate paper-based payments “to the extent permitted by law.” The order cited fraud risks and noted that maintaining physical payment infrastructure cost taxpayers more than $657 million in fiscal 2024.
The Treasury Department may grant limited exceptions for individuals without access to banking services, certain emergency payments and national security activities.
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