IRS says paper checks for tax refunds are being phased out starting next week: Here's what to know

"The Internal Revenue Service (IRS) will start phasing out paper tax refund checks on Tuesday, September 30. This change stems from an executive order issued on March 25, directing the secretary of the Treasury to "cease issuing paper checks for all Federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds." The order made exemptions for cases such as people who don't have access to electronic payment systems."

"In an update on Tuesday, IRS laid out three core benefits of the change: protecting taxpayers, speeding up refunds, and cutting costs. To start, the government body claims that paper checks have a 16-times higher likelihood of being stolen, altered, lost, or delayed compared to an electronic option. As for speed, the IRS claims that people who file electronically and choose direct deposit should receive their refunds in under three weeks."

"Chances are, this switch won't affect you. The IRS reports having issued 93.5 million tax refunds to individuals during the 2025 season, but that only 7% of people received their refund in the mail. However, if you do get paper check refunds, you will eventually need to provide the IRS with banking details. In its update on Tuesday, the IRS urged taxpayers to "act now" and make sure they know their banking details. It further said that taxpayers without bank accounts should consider opening one."

The IRS will phase out paper tax refund checks beginning September 30 under an executive order directing the Treasury to stop issuing paper checks for federal disbursements, with exemptions for those lacking electronic access. The IRS cites three benefits: protecting taxpayers, speeding refunds, and cutting costs. The agency says paper checks are 16 times more likely to be stolen, altered, lost, or delayed. Taxpayers who e-file and choose direct deposit can get refunds in under three weeks versus over six weeks by mail. The IRS issued 93.5 million refunds in 2025; 7% were mailed. Taxpayers should provide banking details or use prepaid cards or digital wallets. Critics warn the change may be rushed and could harm some taxpayers.

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