The IRS has announced a major change to the way taxpayers receive refunds and make payments. Beginning September 30, 2025, paper tax refund checks for individual taxpayers will be phased out, in line with Executive Order 14247. This move is part of a broader effort to transition all federal payments to secure electronic methods.
While full guidance will be released before the 2026 filing season, here’s what we know so far – and what taxpayers should do now to prepare.
Why the Change?
The IRS is shifting away from paper checks in order to:
Protect taxpayers: Paper checks are far more likely to be lost, stolen, altered, or delayed than electronic refunds.
Speed up refunds: Direct deposit refunds are typically received within 21 days of filing, compared to taking over six weeks for mailed checks.
Cut costs: Electronic payments are faster and more efficient for both taxpayers and the government.
What This Means for Taxpayers
Filing stays the same: Taxpayers will continue to file returns using existing forms and methods.
Refunds go digital: Most refunds will be issued by direct deposit or other secure electronic options.
Options for the unbanked: Prepaid debit cards, digital wallets, or limited exceptions will be available for those without bank accounts.
It’s worth noting that most taxpayers are already ahead of this change. During the 2025 filing season, 93% of refunds were issued via direct deposit. Only 7% still opted for paper checks.
What About IRS Payments?
The executive order also covers payments made to the IRS. While specific details are still forthcoming, electronic payments will soon become the default and preferred method over paper checks. For now, taxpayers should continue using existing options, but be prepared for changes in 2026 and beyond.
Planning Ahead
This transition may require individual action, depending on your unique situation. Those most affected – which may include seniors, those without bank accounts, and taxpayers accustomed to paper refunds or payments – should take time now to review their options and avoid last-minute stress.
Bottom Line
The era of paper tax refund checks is coming to a close. Taxpayers will need to be ready for a fully digital refund system, with further guidance expected before the 2026 filing season.
At Angolano & Company, we’re here to help you navigate these changes — whether it’s exploring alternative payment options, or planning ahead for next year’s tax filing. Contact us today to discuss how this transition may affect you.