IRS' move away from paper checks has delayed tax refunds for nearly 1.5 million Americans

"The IRS announced it is phasing out paper checks and pushing taxpayers to use direct deposit to receive their refunds, with limited exceptions. Paper checks have increasingly been vulnerable to fraud, and electronic payments are faster and cheaper."

"Nearly 1.5 million taxpayers have been notified by the IRS to provide direct deposit information, facing potential refund delays of over two months if they do not respond within 30 days."

"For low-income households, tax refunds can be a critical source of income. Although most Americans have a bank account, 5.6 million households were unbanked as of 2023, with higher rates among low-income adults and marginalized communities."

The IRS is transitioning from paper checks to direct deposit for tax refunds, causing delays for over one million taxpayers. This change aims to reduce fraud and expedite payments. Taxpayers receiving notices must provide direct deposit information within 30 days, or they will receive a paper check after a six-week delay. Low-income households, unbanked individuals, and those in rural areas may struggle with this transition, as tax refunds are vital for their income. The IRS has not commented on the situation.

Read at Nextgov.com