The IRS has announced a major update to how tax refunds will be issued. Beginning soon, the agency will phase out paper refund checks, with only limited exceptions. Most taxpayers will now receive their refunds electronically.

Why the Change?
Paper checks are slower, more expensive to process, and carry greater security risks. Moving to electronic payments helps speed up refunds and aligns with a federal directive requiring agencies to reduce paper-based payments.

What Isn’t Changing
You will still file your tax return the same way you always have. This update only affects how refunds are delivered—not how returns are submitted.

How You’ll Receive Your Refund

Direct deposit remains the fastest, safest way to get your money. Since 93 percent of taxpayers already use direct deposit, most people won’t experience any change at all.

If you currently receive paper checks, plan to switch to direct deposit when filing your 2025 return. Just enter your bank’s routing and account number on your tax form.

Prefer not to use a traditional bank? Many mobile apps and prepaid debit cards offer routing and account numbers that qualify for direct deposit.

The IRS may still issue a paper check if you request a waiver due to lack of access to banking or electronic payment tools. However, paper checks take at least six weeks to process, compared to roughly 21 days for electronic refunds.

Need Help Opening a Bank Account?
Several resources can help you get started:
• FDIC GetBanked
• National Credit Union Administration’s Credit Union Locator
• Veterans Benefits Banking Program (for veterans)

Paying Taxes
You may still pay taxes by check, though electronic payments continue to be the quicker and more reliable option. Visit the IRS “Make a Payment” page to review available methods.