IRS to Phase Out Paper Refund Checks
The IRS has announced that beginning September 30, 2025, it will begin phasing out paper refund checks for individual taxpayers.
This change, mandated by Executive Order 14247, is part of a broader push to move all refunds to secure electronic delivery methods whenever permitted by law.
Key Points for Tax Preparers
- No change in filing process: You and your clients will continue to file returns the same way. This announcement only impacts how refunds are issued.
- Refund delivery shift: Refunds will be sent by direct deposit, prepaid debit cards, or other authorized electronic methods. Paper checks will only be available in limited circumstances.
- Client guidance: Preparers should encourage clients to have a valid bank account or electronic payment option ready for refund delivery.
- Security & speed benefits: Paper checks are more prone to being lost, stolen, altered, or delayed. Electronic payments will be faster and more secure for your clients.
- Statistics to share: In the 2025 tax season, over 93.5 million individual refunds were issued. 93% went out via direct deposit, while only 7% were paper checks.
What This Means for Your Clients
- Clients who typically receive paper refund checks will need to transition to electronic options for refunds after September 2025.
- Preparers may want to proactively update client information to ensure smooth refund processing.
- IRS guidance with additional details will be released ahead of the 2026 filing season.
👉 For more information, you can read the full IRS announcement here:
IRS: “IRS to phase out paper tax refund checks starting with individual taxpayers”