IRS to Phase Out Paper Tax Refund Checks by September 30

WASHINGTON, D.C. — The Internal Revenue Service announced on September 23 that it will phase out paper tax refund checks, starting September 30. This change comes as part of a broader effort to transition all federal payments to electronic methods.

Under Executive Order 14247, signed by President Trump, the IRS is required to stop issuing paper checks for all federal disbursements, including tax refunds. The aim is to reduce costs, expedite payments, and enhance security for taxpayers.

During the 2025 filing season, the IRS reported it issued over 93.5 million refunds to individual taxpayers. Of these, 93% opted for direct deposit, leaving only 7% who received paper checks. This decision will encourage even more taxpayers to utilize electronic payment options.

The IRS plans to publish detailed guidance for tax returns due in 2025 before the upcoming filing season. This will help taxpayers, including those without bank accounts, adjust to the new electronic payment model. Options such as prepaid debit cards will be made available for those affected.

Until the end of the month, taxpayers are advised to continue using existing forms and procedures for filing 2024 returns. There will be exceptions allowing some individuals to continue receiving paper checks, especially those facing financial hardships.

The IRS emphasizes that direct deposit not only speeds up refunds but also eliminates the risk of checks being lost or stolen. It’s estimated that mailed checks could take six weeks or longer.

Taxpayers are encouraged to ensure their banking information is up-to-date to facilitate smooth electronic transactions moving forward.