Paper Refund Checks Are No More

The Internal Revenue Service (IRS) is phasing out paper refund checks, intending to completely transition to electronic payments.

Before the 2026 tax filing season, the IRS is supposed to publish detailed guidance for 2025 tax returns. Until then, taxpayers can continue to use existing forms and procedures for matters unrelated to checks.

According to the agency, the change is designed to:

• Protect taxpayers: Paper checks are over 16 times more likely to be lost, stolen, altered or delayed than electronic payments. Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.
• Speed up refunds: Electronic refunds give taxpayers faster access to their money, with payments issued in less than 21 days if filing electronically, choosing direct deposit and submitting an accurate return.
• Cut costs: Electronic payments are more efficient and cost less than paper checks.

How to prepare: The safest and quickest way to receive your refund is to use direct deposit, according to the IRS. To do so, when submitting your return, provide valid bank account information (routing and account numbers). You can also use certain mobile apps and prepaid debit cards if they have a routing and account number. You can check with your mobile app provider or financial institution to confirm which numbers to use.

Individual taxpayers should also enroll in or confirm/update their accounts in IRS Direct Pay, which allows you to pay federal taxes directly from a checking or savings account. Business, trusts and estates should do the same at the Electronic Federal Tax Payment System, and do so immediately; it takes time to activate accounts because a PIN needs to be issued in the mail.