The Internal Revenue Service (IRS) has announced a significant shift in its tax refund disbursement process, moving towards the elimination of paper checks in favor of electronic payments beginning Tuesday, September 30. This decision aligns with an executive order issued by former President Donald Trump in March, aimed at modernizing payment methods and enhancing taxpayer protection.
The IRS emphasizes that this transition to electronic payments is intended to expedite the refund process, protect taxpayers from potential fraud, and reduce costs associated with printing and mailing checks. Given that paper checks are statistically more vulnerable—16 times more likely to be lost, stolen, altered, or delayed—this shift is seen as a necessary move towards more secure and efficient tax processes.
For the upcoming tax season, the IRS is set to release detailed guidelines pertaining to the 2025 tax returns before the 2026 filing season starts. In the meantime, taxpayers are encouraged to continue using the existing forms and procedures, which also apply to those filing their 2024 returns on extension due by December 31, 2025.
The comparison between the two payment methods reveals a stark contrast in speed. Those opting for electronic filing typically receive their money within 21 days, while individuals waiting for paper checks might experience delays of six weeks or more. In light of this, the IRS anticipates substantial cost savings as the agency will no longer bear the expense of printing and mailing physical checks.
The IRS reassured taxpayers that the process of filing remains unchanged. Individuals will continue to file their tax returns as they traditionally would. For those without access to a personal bank account, the agency is prepared to offer alternative secure payment options, including prepaid debit cards and digital wallets, as well as limited exceptions for those who may require paper checks.
The IRS also encouraged taxpayers to verify that their banking information on file is accurate to prevent any disruptions in receiving their refunds. Notably, in the previous tax season, over 93.5 million tax refunds were issued to individual income tax filers, with a staggering 93% of those—nearly 87 million refunds—being distributed through direct deposit. Only a small fraction, about 7%, were received via traditional mail.
As taxpayers prepare for this transition, the IRS remains committed to ensuring a smooth process, highlighting the benefits of electronic payments while still accommodating the needs of those with limited access to traditional banking methods.
