IRS Phasing Out Paper Checks for Tax Refunds Beginning 9/30/2025
Individual taxpayers who have not yet switched to electronic refunds will need to update their refund preferences with the IRS as soon as possible. On September 30, 2025, the U.S. Treasury will begin the process of phasing out the issuance of paper checks for all federal disbursements, beginning with tax refunds for individuals.
During the 2025 tax filing season, 7% or 6.5 million individual taxpayers received a paper check refund by mail.
Alternative Ways to Receive Your Refund
The quickest way to receive your tax refund is by providing your banking information to the IRS for direct deposit to a checking, savings or retirement account. Taxpayers are permitted to split their refund up to a maximum of three separate accounts.
Other options available include:
Prepaid debit card: Check with your bank or card provider to see if your card will work and which account numbers to use.
Mobile payment apps: Some apps accept direct deposits.
Traditional, Roth or SEP-IRA: Deposit into your existing IRA account.
Concerns and Impacts of Electronic Refunds
The goal of transitioning to paperless disbursements is to enhance the speed, safety and reliability of federal payments; yet certain professional organizations have voiced concerns about the transition. One concern is the use of a prepaid cards for tax refunds. If there is a problem issuing a refund via a prepaid card, the cost to replace it will be more expensive than issuing a paper check. Another concern is how this will affect taxpayers living abroad. The IRS does not permit tax refunds via direct deposit to a non-U.S. bank.
If you are currently expecting a tax refund via paper check, you will want to visit the IRS website and use the Where’s My Refund tool.
As always, should you have questions on this or other matters affecting you or your business, please call 215.675.8364 or email us to speak with a CPA today.
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