Compliance

End of Paper Refunds: What Every Taxpayer Needs Before Sept. 30, 2025

The IRS will phase out paper refund checks starting September 30, 2025 due to a new executive order. Here's what taxpayers should do now to avoid delays.

By NomadicTax Research Team • 5-8 min read • November 24, 2025

## Overview of the Phase-Out of Paper Refunds As of **September 30, 2025**, paper checks for individual tax refunds will begin phasing out, under **Executive Order 14247**. IRS and Treasury are moving toward fully digital refunds where permitted by law. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) Most refunds—already many—are delivered via direct deposit, but paper B-checks will no longer be issued to many individuals. For those without valid electronic account info, limited exceptions exist. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) --- ## Who Is Affected, and When Affected people include individual filers whose refunds have historically come via mailed paper checks—especially: - taxpayers without bank accounts, - people who move frequently or whose mail address has changed, - seniors or others preferring physical checks. Refunds for tax years filed after Sept. 30, 2025 for those without electronic payment info may be delayed. Also, **providing direct deposit info becomes essential** to avoid wait-times of six or more weeks typical for mailed checks. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) --- ## What You Need to Do Now 1. **Provide accurate bank routing and account numbers** on your tax return; verify your account and bank’s correctness. 2. If you’re unbanked or prefer alternate methods, explore **prepaid cards**, **digital wallets**, or **direct deposit into a trusted account**. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) 3. Use IRS Form 8888 to split refund across up to **three accounts** if needed. ([taxpayeradvocate.irs.gov](https://www.taxpayeradvocate.irs.gov/news/tax-tips/tips-on-electronic-payment-options-available-to-taxpayers-as-the-irs-phases-out-paper-checks/2025/10/?utm_source=openai)) 4. If mailing address is incorrect or changing, update your IRS address; incorrect address may block direct deposit. 5. Check for upcoming IRS guidance via **IRS.gov/modernpayments**. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) --- ## Exceptions & Special Situations Certain cases will still allow paper checks: - lack of legal electronic account (e.g. religious objection, unbanked), - foreign bank account obstacles, or, - other situations where law requires an exception. IRS guidance will detail these more fully. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) If direct deposit info is missing in your 2025 return: you may get a letter requesting banking info. If not provided, IRS may issue paper check after a **six-week delay** to avoid interest accruing. ([taxpayeradvocate.irs.gov](https://www.taxpayeradvocate.irs.gov/news/tax-tips/tips-on-electronic-payment-options-available-to-taxpayers-as-the-irs-phases-out-paper-checks/2025/10/?utm_source=openai)) --- ## Impact & Why It Matters **Faster refunds & reduced delays.** Electronic payments settle faster; direct deposit refunds can arrive in under **21 days**, whereas paper checks take six weeks or more. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) **Reduced risk.** Paper checks are more likely to be lost, stolen, or delayed. Electronic payments are safer and more reliable. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) **Lower costs & better efficiency.** Digital payments are cheaper for IRS/Treasury and streamline operations. 💡 --- ## Action Plan - Verify your bank/nonbank payment method works with U.S. Treasury direct deposit. - For those abroad, ensure your foreign bank can receive ACH or ABA routing; if not, plan alternate arrangements. - Notify tax preparers or payroll departments of your preferred refund method. - Keep detailed records of your bank info and proof of direct deposit submissions. Transitioning away from paper is a big administrative shift—but the IRS has built in transition relief and options to minimize harm. Prepare now to avoid being part of the 7% still relying on checks and potentially facing delays.