Tax insight

IRS announces phase-out of paper refund checks for individual taxpayers

Insight
5 minute read
September 25, 2025

What happened?

The IRS on September 23 issued IR-2025-94 announcing that paper tax refund checks will be phased out beginning on September 30. This transition away from paper checks, required by Executive Order (EO) 14247, marks the first step of the agency’s broader move to electronic payments. The EO, signed by President Trump in March, directs Treasury and the IRS to stop issuing paper checks for all federal disbursements, including tax refunds, by the end of this month. The EO’s paperless payment and refund directive applies to all taxpayers, not just individual taxpayers, who are not already making payments to or receiving refunds from the IRS via available electronic options.

Why is it relevant?

Most refund checks will be issued electronically beginning with the 2026 filing season. The IRS plans to publish detailed guidance for 2025 returns before that time. Options will be available for taxpayers without bank accounts. Limited exceptions will be made for certain taxpayers to continue to receive paper checks.

Action to consider 

Until further notice, taxpayers should continue to use existing forms and procedures, including filing their 2024 returns on extension with a due date prior to December 31. However, taxpayers who are not already making electronic payments to or receiving electronic refunds from the IRS need to take steps (e.g., know their banking information, consider opening a free or low-cost account) to prepare now, while they have a bit of a reprieve, as they need be ready before their 2025 returns are filed to make payments and receive refunds electronically.