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)
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)
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)
What You Need to Do Now
- Provide accurate bank routing and account numbers on your tax return; verify your account and bank’s correctness.
- If you’re unbanked or prefer alternate methods, explore prepaid cards, digital wallets, or direct deposit into a trusted account. (irs.gov)
- Use IRS Form 8888 to split refund across up to three accounts if needed. (taxpayeradvocate.irs.gov)
- If mailing address is incorrect or changing, update your IRS address; incorrect address may block direct deposit.
- Check for upcoming IRS guidance via IRS.gov/modernpayments. (irs.gov)
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)
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)
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)
Reduced risk. Paper checks are more likely to be lost, stolen, or delayed. Electronic payments are safer and more reliable. (irs.gov)
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.