As the 2026 tax filing season gets underway, we want to remind you of an important change from the Internal Revenue Service that affects how federal tax refunds and payments are issued.
IRS Transition Away from Paper Refund Checks
The IRS, working with the U.S. Department of the Treasury, has begun phasing out paper tax refund checks for individual taxpayers as of September 30, 2025. This change marks the first step in a broader transition toward electronic payments.
The IRS has confirmed that tax return filing procedures remain the same. Taxpayers should continue filing returns using existing forms and methods, including those who filed 2024 returns on extension through the end of 2025. The primary change affects how refunds are delivered after returns are processed.
Why the IRS Made This Change
According to the IRS, issuing refunds electronically helps:
- Protect taxpayers, as paper checks are significantly more likely to be lost, stolen, altered, delayed, or returned as undeliverable
- Speed up refunds, with electronic refunds often issued in fewer than 21 days for electronically filed returns with direct deposit, compared to several weeks for mailed checks
- Improve efficiency and reduce processing costs
Most taxpayers already receive their refunds electronically, and this transition is intended to improve security and reliability for all filers.
What This Means for Individual Taxpayers
- Filing stays the same: Taxpayers should continue filing their returns as they normally would using existing filing options
- Refunds go digital: Most refunds will now be delivered by direct deposit or other secure electronic methods
- Options are available: For individuals without access to traditional banking services, alternatives such as prepaid debit cards, digital wallets, or limited exceptions may be available
- Be prepared: Taxpayers who previously received paper checks should ensure they have banking information available when filing
What This Means for Tax Payments
While this change primarily affects how refunds are issued, the IRS and U.S. Treasury continue to encourage electronic payment methods for amounts owed. Taxpayers should continue using existing payment options unless otherwise instructed. Although paper payments have not been formally eliminated, electronic payments are strongly encouraged to help avoid delays and support timely processing.
What You Should Do Now
If you previously received your tax refund by paper check, we recommend taking the following steps to avoid delays:
- Be prepared to provide banking information so direct deposit can be selected on your tax return
- If you do not have a traditional bank account, alternative options such as prepaid debit cards or digital payment methods may be available
- Continue using existing IRS payment methods for tax payments unless otherwise instructed
For official details, we encourage you to review the IRS guidance directly on the IRS website.
We’re Here to Help
If you have questions about how this change may affect your refund or need assistance preparing for electronic refund options, please contact our office. We are happy to help ensure your return is filed smoothly and your refund is received without unnecessary delay.
