The IRS has announced that it will phase out paper refund checks, requiring nearly all taxpayers to receive their refunds electronically starting soon. It’s a move toward speed, security, and modernization—but it also means you may need to update how you get paid.
Why the Change
Paper checks are expensive, slow, and vulnerable to theft. Electronic payments are faster, more reliable, and cheaper for the IRS to process. The majority of taxpayers already use direct deposit, so this shift mainly affects those who still receive refund checks.
What You Should Do
If you currently receive paper checks, opt for direct deposit when you file your 2025 return. You’ll need your bank’s routing and account numbers. Refunds sent via direct deposit usually arrive within about 21 days, compared to six weeks or more for paper checks.
If you don’t have a bank account, you can use certain prepaid debit cards or mobile payment apps that provide routing and account numbers. The IRS will grant waivers only for taxpayers without access to banking services.
Paying Taxes Still an Option
For now, you can still pay taxes by check, but the IRS encourages electronic payments through its “Make a Payment” portal for faster processing.
Paper refund checks are ending, and direct deposit is the way forward. Updating your information now ensures you get your money quickly and securely.
If you’d like help setting up direct deposit or ensuring your tax payment details are accurate, contact us to discuss your tax strategy.